Question: ABC Manufacturers produces and sells single product. Summarized data of operation for two years are given below:

Selling Price per unit	8,000.00
Manufacturing Cost
a) Variable cost per unit:
Direct Material	1,760.00
Direct Labor	960.00
Variable Overhead	480.00
Fixed cost per year	19,200,000.00
b) Selling & administrative cost:
Variable (per unit sold)	400.00
Fixed cost per year	11,200,000.00
c)	Year 1	Year 2
Beginning Inventory units	0.00	4,000.00
Units produced	20,000.00	12,000.00
Units Sold	16,000.00	16,000.00
ending inventory units	4,000.00	0.00

Required: Income Statement w.r.t absorption costing & direct costing.