Company sells its product for $37 per unit. Variable costs per unit are: manufacturing, $14; and selling and administrative, $2. Fixed costs are: $200000 manufacturing overhead, and $56000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. The manager is under pressure to improve the performance. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the net income be under absorption costing for each alternative? 40000 units 50000 units

$584000 $584000

$584000 $624000

$584000 $635200

$624000 $584000