The following information pertains to Stark Corporation:
Beginning inventory
0 units
Ending inventory
5,000 units
Direct labor per unit
$20
Direct materials per unit
16
Variable factory overhead per unit
4
Fixed factory overhead per unit
10
Variable selling costs per unit
12
Fixed selling costs per unit
16
Absorption-costing income would be ____ the variable-costing income.
a. $50,000 less than
b. $50,000 greater than
c. $70,000 less than
d. $70,000 greater than