Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March:

1	Sales (35,000 units)		$10,500,000.00
2	Production costs (41,000 units):
3	Direct materials	$4,100,000.00
4	Direct labor	2,255,000.00
5	Variable factory overhead	1,025,000.00
6	Fixed factory overhead	615,000.00	7,995,000.00
7	Selling and administrative expenses:
8	Variable selling and administrative expenses	$1,140,000.00
9	Fixed selling and administrative expenses	225,000.00	1,365,000.00

	Required:
a.	Prepare an income statement according to the absorption costing concept.
b.	Prepare an income statement according to the variable costing concept