2. Complete the following income statements using variable costing. BUSINESS SOLUTIONS Variable Costing Income Statements 300 320 Production volume (units) workstations workstations 300 300 Sales volume (units) workstations workstations Sales $ 300 $ 300 Less: Variable costs Direct materials 300 800 Direct labor 300 400 Variable overhead 300 100 Variable selling expenses 300 Fixed selling expenses Total variable costs 1.200 1,350 Contribution margin (900) (1.050) Less: Fixed expenses Fixed overhead costs Fixed selling expenses Variable overhead 50 Net income (loss) CA (900) $ (1.050) 320 workstations 300 workstations $ 300 $ 800 BUSINESS SOLUTIONS Variable Costing Income Statements Production volume (units) 300 workstations Sales volume (units) 300 workstations Sales $ 300 Less: Variable costs Direct materials 300 Direct labor 300 Variable overhead 300 Variable selling expenses 300 Fixed selling expenses Total variable costs 1,200 Contribution margin (900) Less: Fixed expenses Fixed overhead costs Fixed selling expenses Variable overhead 400 100 50 1,350 (1,050) Net income (loss) $ (900) $ (1.050) Under variable costing, can a company increase its net income by increasing production? No Santana Rey expects sales of Business Solutions's line of computer workstation furniture to equal 300 workstations (at a sales price of $3.000 each) for 2018. The workstations' manufacturing costs include the following. Direct materials Direct labor Variable overhead Fixed overhead $ 800 per unit $ 400 per unit $ 100 per unit $24,000 per year The selling expenses related to these workstations follow. Variable selling expenses Fixed selling expenses 5 se per unit 34.000 per year Santana is considering how many workstations to produce in 2018 She is confident that she will be able to sell any workstations in her 2018 ending inventory during 2019. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations