1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

Direct materials : 7$ per unit

Direct labor : 9$ per unit

Variable overhead: 4$ per unit

Fixed manufacturing overhead: 100,000$ per year

Variable: 85,000$ per year Fixed: 45,000$ per year

Units sold: 7,500 units Units produced: 10,000

Selling price: 100$ per unit

Prepare an income statement for the year using variable costing. Prepare an income statement for the year using absorption costing