Gibson Glass Company makes stained glass lamps. Each lamp that it sells for $315.40 per lamp requires $16.90 of direct materials and $71.80 of direct labor. Fixed overhead costs are expected to be $198,000 per year. Gibson Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero.

Required

1. Prepare income statements using absorption costing, assuming that Gibson Glass makes 1,000, 1,250, and 1,500 lamps during the year.

2. Prepare income statements using variable costing, assuming that Gibson Glass makes 1,000, 1,250, and 1,500 lamps during the year.

Complete this question by entering your answers in the tabs below. Required A Required B Prepare income statements using absorption costing, assuming that Gibson Glass makes 1,000,1,250 during the year. (Do not round intermediate calculations.) 1,250 1,500 GIBSON GLASS COMPANY Income Statements - Absorption Costing Units Produced 1,000 Sales revenue Fixed cost Gross margin Variable costs Selling and administrative expenses Net income 0 $ 0 0 0 $ 0 $ Complete this question by entering your answers in the tabs below. Required A Required B Prepare income statements using variable costing, assuming that Gibson Glass makes 1,000, 1,250, and the year. (Do not round intermediate calculations.) GIBSON GLASS COMPANY Income Statements - Variable Costing 1,000 1,250 1,500 Units Produced Sales revenue Variable costs Contribution margin Fixed cost 0 0 0 Net income $ $ 0 $ 0