Drops Corp., which began business at the start of the current year, had the following data: Planned and actual production: 20,000 units Sales: 17,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $130,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The net income that the company would disclose on an absorption-costing income Select one: a. $76,500 b. $138,000 c. $44,500 O d. $27,500 e. $95.500 The underlying difference between absorption costing and variable costing lies in the treatment The underlying difference between absorption costing and variable costing lies in the treatment of: Select one: a. variable manufacturing overhead. b.fixed selling and administrative expenses. c. variable selling and administrative expenses. d. direct labor. e. fixed manufacturing overhead. All of the following are expensed under variable costing except: All of the following are expensed under variable costing except: Select one: a. fixed manufacturing overhead. b. variable manufacturing overhead. oc. variable selling and administrative costs and fixed selling and administrative costs. d. fixed selling and administrative costs. O e. variable selling and administrative costs