Carbon Company provides the following information about resources.

	Unused Resources Capacity			Cost Driver Volume
Resources used
Materials	$	2,000		8,000	pounds
Energy		1,560		340	machine-hours
Setups		0		80	setups
Purchasing		1,800		80	purchase orders
Customer service		7,600		50	returns
Long-term labor		3,400		320	labor-hours
Administrative		2,800		420	labor-hours
Resources supplied
Materials	$	98,000
Energy		17,880
Setups		24,000
Purchasing		21,000
Customer service		15,600
Long-term labor		29,000
Administrative		28,000

Sales revenue for Carbon Company is $300,000.

Required:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.