Aspen Manufacturing Company sells its products for $$33$ each. The current production level is $50,000$ units, although only $40,000$ units are anticipated to be sold.

Unit manufacturing costs are:

Direct materials $$6\mathrm{.}00$

Direct manufacturing labor $$9\mathrm{.}00$

Variable manufacturing costs $$4\mathrm{.}50$

Total fixed manufacturing costs $$180,000$

Marketing expenses $$3\mathrm{.}00$ per unit, plus $$100,000$ per year

Required:

a$.$ Prepare an income statement using absorption costing.

b$.$ Prepare an income statement using variable costing.