Adria Lopez expects sales of her line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000) for 2014.The workstations' manufacturing costs include the following:

Direct Material$800 per unit

Direct Labor$400 per unit

Variable overhead$100 per unit

Fixed Overhead$24,000 per year

The selling expenses related to these workstations follow:

Variable selling expenses$50 per unit

Fixed selling expenses$4,000 per year

Adria is considering how many workstations to produce in 2014.She is confident that she will be able to sell any workstations in her 2014 ending inventory during 2015.However, Adria does not want to overproduce as she does not have sufficient storage space for many more workstations.

1.I need to figure out Success Systems' absorption costing income thinking that:

a)300 workstations are produced.

b)320 workstations are produced.

2.I need to figure out Success Systems' variable costing income thinking that:

a)300 workstations are produced.

b)320 workstations are produced.

3.I need to make it very clear to Adria the differences in the income figures in parts 1 and 2.How should Adria use the information from parts 1 and 2 to help make production decisions?