Howard Lumber Company mistakenly classified a period cost as a product cost that totaled $20,000. The company produced 2,000 units of product and sold 1,000 of them during the year. Management is paid a bonus equal to 2% of net income. In the year in which the mistake was made: Select one: A. product costs were understated. o B. management bonuses were underpaid. C. the company's income statement portrayed a more unfavorable position than actually existed. D. the company's net income was overstated