Front Company had net income of $88,500 based on variable costing. Beginning and ending inventories were 2,400 units and 4,400 units, respectively. Assume the fixed overhead per unit was $8.70 for both the beginning and ending inventory. What is net income under absorption costing?

Multiple Choice

• $89,700

• $29,340

• $147,660

• $105,900

• $71,100