E$7-1$B$.$ Variable and Absorption Costing Grant Company sells its product for $$50$ per unit. Variable manu$-$

facturing costs per unit are $$30,$ and fixed manufacturing costs at the normal operating level of $15,000$

units are $$90,000.$ Variable selling expenses are $$4$ per unit sold. Fixed administrative expenses total

$$155,000.$ Grant had $7,000$ units at a per$-$unit cost of $$35$ in beginning inventory. During the year, the

company produced $15,000$ units and sold $20,000.$ Would net income for Grant Company be higher if

calculated using variable costing or using absorption costing? Calculate reported income using each

method. Please change beginning inventory to $$36$ per unit rather than $$35.$