Blindhawk, Inc. sells towels that have the following cost characteristics: Selling price $10 per towel Variable cost per unit: Production $ 3 Selling & Administrative $ 1 Fixed costs: Production $40,000 per year Selling & Administrative $60,000 per year 4. If 25,000 towels were produced during the year and 20,000 towels were sold, what would be Blindhawks net income under variable costing? (There is no beginning inventory.) A. $28,000 B. $120,000 C. $60,000 D. $20,000 5. If 25,000 towels were produced during the year and 20,000 towels were sold, what would be Blindhawks net income under absorption costing? (There is no beginning inventory.) A. $28,000 B. $120,000 C. $60,000 D. $20,000