Lee Co. produced 8,000 units of inventory and sold 6,000 units. A companywide overhead rate based on number of units produced is used to allocate manufacturing overhead. The company has the following production costs and selling price data: Selling price: $25 per unit Variable manufacturing cost: $12.00 per unit Fixed manufacturing overhead cost: $60,000 Fixed selling and administrative cost: $10,000 Required: (a) What is the net income under variable costing? (6 marks) (b) What is the net income under absorption costing? (12 marks) (c) Explain why there is a difference in net income under (a) and (b). (3 marks)