ompanys only product sells for $219 per unit. Data for its first year of operations follow.

Direct materials$ 23per unitDirect labor$ 31per unitVariable overhead$ 9per unitFixed overhead$ 253,000per yearVariable selling and administrative expenses$ 21per unitFixed selling and administrative expenses$ 206,000per yearUnits produced and sold23,000units

1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.