Santana Rey expects sales of Business Solutions's line of computer workstation furniture to equal 300 workstations (at a sales price of $3,800 each) for 2019. The workstations' manufacturing costs include the following. Direct materials Direct labor Variable overhead Fixed overhead $ 710 per unit $ 350 per unit $ 70 per unit $24,000 per year The selling expenses related to these workstations follow. Variable selling expenses Fixed selling expenses $ 35 per unit $3,400 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. Production volume 300 320 workstations workstations Cost of goods sold: Cost of goods sold per unit Number of workstations sold Total cost of goods sold BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations 00 0 $ 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? BUSINESS SOLUTIONS Variable Costing Income Statements Production volume (units) 300 workstations 300 Sales volume (units) workstations 320 workstations 300 workstations Net income (loss) Under variable costing, can a company increase its net income by increasing production