Curb Appeal Company The following information pertains to Curb Appeal Company (the per-unit amounts apply to all years): Beginning Finished Goods Inventory 1,000 units Ending Finished Goods Inventory 6,000 units Direct labour per unit $40 Direct materials per unit 20 Variable manufacturing overhead per unit 10 Fixed manufacturing overhead per unit 30 Variable selling and administrative costs per unit 6 Fixed selling and administrative costs per unit 14

Refer to Curb Appeal Company. What is the relationship between absorption costing net income and variable costing net income?

Absorption costing net income is $150,000 greater.

Absorption costing net income is $240,000 less.

Absorption costing net income is $240,000 greater.

Absorption costing net income is $150,000 less.