Review the income statements on the Absorption Statement andVariable Statement panels, then complete the table below. The companys sales price per unit is $80.00, and the number of units in ending inventory is 4,000.

Item	Amount
Number of units sold
Variable sales and administrative cost per unit
Number of units manufactured
Variable cost of goods manufactured per unit
Fixed manufacturing cost per unit

Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold.

Saxon, Inc.

Absorption Costing Income Statement

For the Year Ended December 31, 2016

1	Sales		$1,280,000.00
2	Cost of goods sold:
3	Beginning inventory	$0.00
4	Cost of goods manufactured	840,000.00
5	Less ending inventory	168,000.00	672,000.00
6	Gross profit		$608,000.00
7	Selling and administrative expenses		273,000.00
8	Income from operations		$335,000.00

Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a calculation of manufacturing margin.

Saxon, Inc.

Variable Costing Income Statement

For the Year Ended December 31, 2016

1	Sales		$1,280,000.00
2	Variable cost of goods sold:
3	Beginning inventory	$0.00
4	Variable cost of goods manufactured	600,000.00
5	Less ending inventory	120,000.00	480,000.00
6	Manufacturing margin		$800,000.00
7	Variable selling and administrative expenses		208,000.00
8	Contribution margin		$592,000.00
9	Fixed costs:
10	Fixed manufacturing costs	$240,000.00
11	Fixed selling and administrative expenses	65,000.00	305,000.00
12	Income from operations		$287,000.00