Q 8.66: Malibu Manufacturing Ltd. has the following budgeted information for their only product: Sales per unit Sales (in units) One $30.00 50,000 Years Two $30.00 50,000 Three $30.00 50,000 Production (in units) Total fixed production cost Variable product cost/unit 80,000 50,000 $200,000 $200,000 $3.50 $3.50 20,000 $200,000 $3.50 If Malibu follows through with their budget exactly as planned, what can you predict for net income for the three years under variable costing? A Net income in Year Three will be much lower than net income in Years One and Two. B Net income will be lowest in Year One and highest in Year Three. C Net income will be the same in all three years because sales are the same, and costs are the same. D Net income in Year One will be much lower than net income in Years Two and Three