Front Company had net income of $87,500 based on variable costing. Beginning and ending inventories were 2,300 units and 4,200 units, respectively. Assume the fixed overhead per unit was $8.65 for both the beginning and ending inventory. What is net income under absorption costing?

Multiple Choice

• $71,065

• $103,935

• $143,725

• $31,275

• $88,650