Great Life Co. commence business on October 1 of the current year. The following data summarized the operation at 100% of capacity during October results of Great Life Co.

Production	1,000 units
Sales ($120 per unit)	800 units
Ending Inventory	200 units
Total Cost of goods manufactured	$62,500
Fixed manufacturing costs	$35,000
Total Selling and Administrative expenses	$15,000
Fixed Selling and Administrative expenses	$6,000

Required:

(a)	Prepare an income statement using absorption costing.
(b)	Prepare an income statement using variable costing.
(c)	Explain which one will best suit for the management decision