Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500, At year-end, the company reported the following income statement using absorption costing Sales (8,500 * $45) Cost of goods sold (8,500 $20) Gross margin Selling and administrative expenses Net income $382,500 170,000 $212,500 60,000 $152,500 Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). Fifteen percent of total selling and administrative expenses are variable. Compute net income under variable costing Multiple Choice $158,500 $246,500 $206,500 $237.500