The Colin Division of Wildhorse Company sells its product for $$33$ per unit. Variable costs per unit include: manufacturing, $$10$; and selling and administrative, $$2.$ Fixed costs are: $$200000$ manufacturing overhead, and $$59000$ selling and administrative. There was no beginning inventory. Expected sales for next year are $40000$ units. Kevin Hall, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce $40000$ units or $59000$ units next year.

What would the net income be under variable costing for each alternative? $($Please provide the correct answer. Note this a multiple choice question thus there is only one correct answer$).$

$40000$ units $59000$ units

$-581000-581000$

$-581000-632800$

$-581000-800000$

$-621000-581000$