Please assist with the given problem.
Ace Manufacturing Company produced 12,000 units and sold 10,000 units during 2010. The prime costs required for one unit of product totaled $10, along with variable factory overhead of $2. Total fixed factory overhead during 2010 was $48,000. Ace's sales expenses were $5 per unit, with annual fixed sales and administrative expenses of $100,000. The sales price per unit during 2010 was $30.
What is the net income according to absorption costing?
What is the net income according to variable costing?
Explain the difference in net income between absorption and variable costing?