Chatterboxes Inc. prepared an income statement using variable costing that reported a net income of $85,000. When net income was calculated using absorption costing, the amount came to $65,000. Most likely this is a result of

A) production volumes exceeding sales volumes for the month.

B) fixed manufacturing costs reported as period costs on the absorption costing income statement.

C) $20,000 of fixed manufacturing costs deferred in beginning inventory.

D) sales volumes exceeding production volumes for the month.