Sales Variable and Absorption Costing Grant Company sells its product for $50 per unit. Variable manufacturing costs per unit are $30, and fixed manufacturing costs at the normal operating level of 15,000 units are $90,000. Variable selling expenses are $4 per unit sold. Fixed administrative expenses total $155,000. Grant had 7,000 units at a per-unit cost of $35 in beginning inventory in 2019. During 2019, the company produced 15,000 units and sold 20,000. Would net income for Grant Company in 2019 be higher if calculated using variable costing or using absorption costing? Calculate reported income using each method. Do not use negative signs with any answers. Absorption Costing Income Statement $ 1,000,000 Cost of Goods Sold: Beginning Inventory 245,000 450,000 90,000 Less: Ending Inventory 72,000 700,000 x Gross profit 300,000 x Selling expense 80,000 Administrative expense 235,000 x Net Income 52,000 Variable Costs Fixed Costs Cost of Goods Sold $ Variable Costing Income Statement $ 1,000,000 Sales Cost of Goods Sold: 210,000 Beginning Inventory Variable Costs 450,000 80,000 x Less: Ending inventory Variable cost of goods sold Variable selling expense Contribution margin - 210,000 x 60,000 x 925,000 x Fixed costs: Manufacturing cost Administrative Expense 90,000 155,000 Total Fixed Cost 325,000 x 75,000 Net Income $