Santana Rey expects sales of Business Solutions's line of computer workstation furniture to equal 300 workstations (at a sales price of $3,300 each) for 2018. The workstations' manufacturing costs include the following. Direct materials Direct labor Variable overhead Fixed overhead $ 740 per unit $ 320 per unit $ 80 per unit $19,200 per year The selling expenses related to these workstations follow. Variable selling expenses Fixed selling expenses $ 45 per unit $3.300 per year Santana is considering how many workstations to produce in 2018. She is confident that she will be able to sel any workstations in her 2018 ending inventory during 2019. However, Santana does not want to overproduce she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. Cost of goods sold: Production volume 300 320 workstations workstations $ 7401 $ 740 320 320 80 80 Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Cost of goods sold per unit Number of workstations sold Total cost of goods sold $ 1.140 1.140 BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations $ 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations 0 0 $ 0 $ 0 Under absorption costing can the difference between production volume and sales volume affect the reported net income foss? 2. Complete the following income statements using variable costing. BUSINESS SOLUTIONS Variable Costing Income Statements 300 Production volume (units) workstations Sales volume (units) workstations 320 workstations 300 workstations 300 Net income (loss) Under variable costing, can a company increase its net income by increasing production