Answer:
d. $2,000 less
Explanation:
The computation is shown below:
Particulars January February March
Units beg.
inventory 0 3,000 4,500
Units produced 10,000 10,000 10,000
Units sold -7,000 -8,500 -10,500
Units ending
inventory 3,000 4,500 4,000
Now
= $4 × (4,500 - 4,000)
= $2,000
So, here the income arise from absorption costing should be lower than the variable costing as the inventory is reduced