Answer:
$26,600
Explanation:
The computation of the net income under variable costing is shown below:
Net income under absorption costing $42,000
Less:
Fixed overhead cost (1,100 units × $14) -$15,400
Net income under variable costing $26,600
We simply deduct the fixed overhead cost from the absorption costing as the variable costing do not include any fixed overhead cost so the same is to be deducted
