#7. The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2018. Selling price per unit $12.50 Variable Cost per Unit: Direct Materials Direct Labor Overhead Selling & Admin $3.00 $2.50 $1.20 $2.35 Fixed Costs (Total) Overhead Selling & Admin $50,000 $45,000 Required: a. Prepare an income statement using the contribution approach for both scenarios b. Prepare an income statement using the absorption approach for both scenarios Scenario 1 Windy Wind Chime has produced and sold 100,000 units Scenario 2 Windy Wind Chime has produced 100,000 units but sold 120,000 units