Please assist with the given problem.
Problem: Ace Manufacturing Company produced 12,000 units and sold 10,000 units during 2010. The prime costs required for one unit of product totaled $10, along with variable factory overhead of $2. Total fixed factory overhead during 2010 was $48,000. Ace's sales expenses were $5 per unit, with annual fixed sales and administrative expenses of $100,000. The sales price per unit during 2010 was $30.
Q1. What is the net income according to absorption costing?
Q2. What is the net income according to variable costing?
Q3. Explain the difference in net income between absorption and variable costing?