Lion Inc. produces a single product. Data concerning the company's operations last year appear below:

Units in beginning inventory0 Units produced250 Units sold225 Selling price per unit$850 Variable costs per unit: Direct materials$100 Direct labor$320 Variable manufacturing overhead$40 Variable selling and administrative$20 Fixed costs in total: Fixed manufacturing overhead$60,000 Fixed selling and administrative$20,000 Required:

1.an income statement for the year using absorption costing.

2.income statement for the year using variable costing. iii. Reconcile the variable costing and absorption costing net operating incomes.