Tim's tools, a manufacturer of cordless drills, began operations this year. during this year, the company produced 20,000 units and sold 18,000 units. at year-end, the company reported the following income statement using absorption costing: sales (18,000 × $30) $ 540,000 cost of goods sold (18,000 × $14) 252,000 gross margin $ 288,000 selling and administrative expenses 90,000 net income $ 198,000 production costs per unit total $14, which consists of $12.90 in variable production costs and $1.10 in fixed production costs (based on the 20,000 units produced). 60% of total selling and administrative expenses are variable. compute net income under variable costing.