Santana Rey expects sales of Business Solutionss line of computer workstation furniture to equal 300 workstations (at a sales price of $4,000 each) for 2019. The workstations manufacturing costs include the following. Direct materials $ 710 per unit Direct labor $ 310 per unit Variable overhead $ 80 per unit Fixed overhead $ 24,000 per year The selling expenses related to these workstations follow. Variable selling expenses $ 45 per unit Fixed selling expenses $ 3,200 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.

Complete the following income statements using absorption costing.

	Production volume
Cost of goods sold:	300 workstations	320 workstations
Cost of goods sold per unit
Number of workstations sold
Total cost of goods sold
BUSINESS SOLUTIONS
Absorption Costing Income Statements
	Production volume
Sales volume - 300 Workstations	300 workstations	320 workstations
Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)?

• omplete the following income statements using variable costing.

  BUSINESS SOLUTIONS
  Variable Costing Income Statements
  Production volume (units)	300 workstations	320 workstations
  Sales volume (units)
  Net income (loss)
  Under variable costing, can a company increase its net income by increasing production?