Rey Company's single product sells at a price of $231 per unit. Data for its single product for its first year of operations follow. At 35 per unit 43 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 9 per unit $ 286,000 per year $ 33 per unit $ 230,000 per year 26,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement Sales $ 6,006,000 Less: Variable costs Direct materials $ 910,000 Direct labor 1,118,000 234,000 Variable overhead costs Fixed overhead costs 0 X X Cost of goods sold Contribution margin 2,262,000 3,744,000 X Less: Variable costs 230,000 Fixed selling and administrative costs Fixed overhead costs 286,000 Total fixed expenses 516,000 $ 2,370,000 Net income (loss)