Nielson Corp. sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and administrative, $75. Fixed costs are: $18,000 manufacturing overhead, and $24,000 selling and administrative. There was no beginning inventory at 1/1/11. Production was 20 units per year in 2011-2013. Sales was 20 units in2011, 16 units in 2012, and 24 units in 2013. For the three years 2011-2013,
a) absorption costing income exceeds variable costing income by $6,000.
b) absorption costing income equals variable costing income.
c) variable costing income exceeds absorption costing income by $6,000.
d) absorption costing income may be greater than, equal to, or less than variable costing income, depending on the situation.