Net Income under Variable Costing for Two Years. (Appendix). Abvar Company incurred fixed factory overhead of $50,000 in both 20x1 and 20x2. Unit sales and production for each year were as follows: Sales Production 20x2 20x1 230,000 200,000 200,000 250,000 Net income under absorption costing was $33,000 in 20x1 and $40,000 in 20x2. The company uses the LIFO method of inventory valuation. Determine the amount of net income under variable costing for 20x1 and 20x2.