Santana Rey expects sales of Business Solutionss line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2019. The workstations manufacturing costs include the following.

Direct materials	$	800		per unit
Direct labor	$	400		per unit
Variable overhead	$	100		per unit
Fixed overhead	$	24,000		per year

The selling expenses related to these workstations follow.

Variable selling expenses	$	50	per unit
Fixed selling expenses	$	4,000	per year

Santana is considering how many workstations to produce in 2019. She is confident that she will be able to sell any workstations in her 2019 ending inventory during 2020. 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.