Munoz Glass Company makes stained glass lamps. Each lamp that it sells for $316.50 per lamp requires $16.80 of direct materials and $71.40 of direct labor. Fixed overhead costs are expected to be $195,000 per year. Munoz Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero.

Prepare income statements using absorption costing, assuming that Munoz Glass makes 1,000, 1,250, and 1,500 lamps during the year. (Do not round intermediate calculations.)

MUNOZ GLASS COMPANY
Income Statements Absorption Costing
Units Produced	1,000	1,250	1,500
Sales revenue	$316,500
Cost of goods sold
Gross margin	316,500	0	0
Selling and administrative expenses	0	0	0
Net income	$316,500	$0	$0

Prepare income statements using variable costing, assuming that Munoz Glass makes 1,000, 1,250, and 1,500 lamps during the year. (Do not round intermediate calculations.)

MUNOZ GLASS COMPANY
Income Statements Variable Costing
Units Produced	1,000	1,250	1,500
Sales revenue	$316,500
Variable costs
Contribution margin	316,500	0	0
Fixed cost	195,000	195,000	195,000
Net income	$121,500	$(195,000)	$(195,000