Consider the following information for Presidio Inc.'s most recent year of operations.

Number of units produced2,800

Number of units sold1,650

Sales price per unit $780.00

Direct materials per unit70.00

Direct labor per unit100.00

Variable manufacturing overhead per unit50.00

Fixed manufacturing overhead per unit ($334,320 2,800 units)119.40

Total variable selling expenses ($11 per unit sold)18,150.00

Total fixed general and administrative expenses89,000.00

Required:

2-a.Complete full absorption costing income statement for Presidio. Assume there was no beginning inventory.

2-b.Complete variable costing income statement for Presidio. Assume there was no beginning inventory.

3.Compute the difference in profit between full absorption costing and variable costing.