Net Income under Absorption and Variable Costing. (Appendix). A Company produced 80,000 units and sold 90,000 units of product in 2015. Fixed factory overhead for the year totaled $100.000. Production and fixed factory overhead were the same in 20x5 as they were in 2014. The company uses the LIFO method of inventory valuation. Under which type of costing, absorption or variable, will net income be greater? By how much?