Felski Football Company sells its footballs for $20 each. The current production level is 5,000 footballs although 6,000 units are anticipated to be sold. Felski has 1,000 footballs left from last period she can sell to make up the difference.

Unit manufacturing costs are: Direct materials $5.00 Direct manufacturing labor $3.00 Variable manufacturing costs $1.00

Total fixed manufacturing costs $20,000 Total fixed marketing expenses $ 5,000

Required: a. Would absorption or variable costing net income be higher? b. What is the difference in net income between variable and absorption costing net income?