Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year 2020: Sales (20,000 $720,000 units) Direct materials $259,200 used Direct labor $86,400 costs Variable manufacturing $25,920 overhead Fixed manufacturing $34,560 overhead Variable selling and $43,200 administrative expenses Fixed selling and $144,000 administrative expenses The company produced 24,000 units and sold 20,000 units in 2020. Direct materials and direct labor are variable costs. One unit of direct material goes into each unit of finished goods. Overhead rates are based on a volume of 24,000 units and are $2.16 and $2.88 per unit for variable and fixed overhead, respectively. The ending inventory is 4,000 units of finished goods on hand at the end of 2020. There was no inventory at the beginning of 2020. Required: A. Prepare an income statement for 2020 under variable costing. B. Prepare an income statement for 2020 under absorption costing