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The Colin Division of Blossom Company sells its product for $$30$ per unit. Variable costs per unit include: manufacturing, $$10$; and selling and administrative, $$2.$ Fixed costs are: $$200000$ manufacturing overhead, and $$50000$ selling and administrative. There was no beginning inventory. Expected sales for next year are $40000$ units. James Smith, 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 $50000$ units next year.

What would the net income be under variable costing for each alternative?

$40000$ units $50000$ units

$\backslash$table$[[$$$470000,$$$470000$