Santana Rey expects sales of Business Solutions line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2021. The workstations manufacturing costs include the following.

Direct materials	$ 720	per unit
Direct labor	$ 360	per unit
Variable overhead	$ 50	per unit
Fixed overhead	$ 28,800	per year

Selling and administrative expenses for these workstations follow.

Variable	$ 40	per unit
Fixed	$ 3,000	per year

Santana is considering how many workstations to produce in 2021. She is confident that she will be able to sell any workstations in her 2021 ending inventory during 2022. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing. 3. Which costing method, absorption or variable, yields the higher income when 320 workstations are produced and 300 are sold?