Taylor Company manufactures financial calculators, which are sold to wholesalers for $15 each. Taylors variable manufacturing cost per unit is $5, and the variable marketing cost per unit is $0.50. Taylors total budgeted fixed overhead per year is $450,000. The units budgeted totaled 300,000 and units actually produced totaled 250,000. The units sold totaled 200,000. Based on these facts, the amount by which Taylors absorption and variable costing income differ and the statement which shows higher income are:

• a. $90,000; variable
• b. $125,000; variable
• c. $90,000; absorption
• d. $125,000; absorption