Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table:

Production costs
Direct materials	$90 per unit
Direct labor	$75 per unit
Variable overhead	$240,000 in total
Fixed overhead	$420,000 in total
Nonproduction costs
Variable selling and administrative	$80,000 in total
Fixed selling and administrative	$520,000 in total

Given the Galaxy, Inc. data, what is net income using absorption costing?

A.	$11,275,000

B.	$17,400,000

C.	$16,360,000

D.	$16,800,000

E.	$16,220,000

Given the Galaxy Inc. data, what is net income using variable costing?

A.	$16,220,000

B.	$17,400,000

C.	$16,360,000

D.	$11,275,000

E.	$16,800,000