ES Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal 300 workstations (at a sales price of $3,100 each) for 2021. The workstations' manufacturing costs include the following. Direct materials $ 740 per unit Direct labor $ 360 per unit Variable overhead $ 70 per unit Fixed overhead $ 19,200 per year Selling and administrative expenses for these workstations follow. Variable $ 35 per unit Fixed $ 3.800 per year Santana is considering how many workstations to produce in 2021. She is condent that she will be able to sell any workstations in her 2021 ending inventory during 2022. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing. 3. Which costing method, absorption or variable, yields the higher income when 320 workstations are produced and 300 are sold? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the following income statements using variable costing. Required 1 Required 2 Required 3 Complete the following income statements using variable costing. BUSINESS SOLUTIONS Income Statements (Variable Costing) 300 320 Production volume (units) workstations workstations 300 300 Sales volume (units) workstations workstations Sales Less: Variable expenses Variable cost of goods sold Contribution margin 0 0 Less: Fixed expenses Fixed overhead costs Fixed selling and administrative expenses Income $ 0 $ 0