Captain America makes dessert pie for large supermarket chains. The single serving pies are frozen and can last in storage for months. Cost information on the pies is as follow:

Ingredients used for pies $275,000

Wages used to make pies 120,000

Overhead of the factory-variable 65,000

-fixed 125,000

Office staff 75,000

Sales staff 150,000

Steve's Salary 70,000

Captain America made 500,000 pies this past year but only sold 450,000 to his customers. he sells them for $3 per pie.steve tells you that the office and sales staff are variable costs while his salary is fixed.

Create the Absorption income statement and Variable income statement.