At the end of a company's first year of operations, 3,600 units of inventory are on hand. Variable costs are $100 per unit, and fixed manufacturing costs are $45 per unit. The use of absorption costing, rather than variable costing, would result in a higher net income of what amount? We are looking for the difference between the two incomes. $380,000 $162,000 $90,000 $198,000 Izzy's Ice Cream produced 40,000 cases of ice cream bars and sold 35,000 of them at $35 each. The following information is cost for year 2020: Direct materials $480,000 Direct labor $80,000 Fixed overhead $40,000 Variable overhead $20,000 $40,000 Fixed selling & administrative Variable selling & administrative $35,000 What is Izzy's Ice Cream Company's income under variable costing? O $602,500 $682,500 $1,225,000 $637,500