sacredtheory on "Absorption Costing"

130,000 is the original net income 110,000 units x $2 =
$220,000 ($2 is the selling price per unit minus variable costs per
unit) Total fixed costs are $90,000 (100,000 + .25, and 100,000 +
.65) -- total fixed costs will remain unchanged since you're still
within the relevant range $220,000 - 90,000 = $130,000