A company has $45,000 of net income using absorption costing. Its beginning inventory contained fixed overhead of $4,000, while its ending inventory contained fixed overhead of $7,000. The company’s...

A company has $45,000 of net income using absorption costing. Its beginning inventory contained fixed overhead of $4,000, while its ending inventory contained fixed overhead of $7,000. The company’s net income using variable costing would be:

1. $56,000


2. $45,000


3. $42,000


4. $48,000


5. $34,000