Munoz Manufacturing Company makes a product that sells for $75.80 per unit. Manufacturing costs for the product amount to $26.80 per unit variable, and $71,750 fixed. During the current accounting period, Munoz made 3,500 units of the product and sold 2,800 units. Selling and administrative expenses were zero.

Required

Prepare an absorption costing income statement.

Prepare a variable costing income statement.