Basketball Products has the following cost information available for 2016:

Direct materials	$27.00 per unit
Direct labor	$16.00 per unit
Variable manufacturing overhead	$4.00 per unit
Variable selling and administrative costs	$3.00 per unit
Fixed manufacturing overhead	$20,000
Fixed selling and administrative costs	$5,000

During 2016, Basketball produced 1,000 units out of which 750 units were sold for $250 each. Required:

A.	Present a contribution format income statement using variable costing.
B. C.	Present a multi-step income statement assuming the company uses absorption costing. Why is net income under these methods different?