ABC Company gathered the following information regarding itsonly product: Variable selling and administrative expenses $30,000 Direct labor 20,000 Variable factory overhead 17,000 Fixed selling and administrative expenses 14,000 Direct materials used 15,000 Fixed factory overhead 10,000 Units produced and sold 25,000 units Selling price per unit $30

Required: a. Prepare an income statement using the contribution approach. b. Prepare an income statement using the absorption approach.