The ABC Company produces and sells a single product. The following data refer to the year just completed:

	Beginning inventory........................................................	0
	Units produced................................................................	10,000
	Units sold........................................................................	9,500
	Selling price per unit.......................................................	$500
	Selling and administrative expenses:
	Variable per unit..........................................................	$10
	Fixed (total)..................................................................	$50,000
	Manufacturing costs:
	Direct materials cost per unit.......................................	$200
	Direct labor (variable) cost per unit.............................	$50
	Variable manufacturing overhead cost per unit...........	$25
	Fixed manufacturing overhead (total)..........................	$100,000

1. Prepare an income statement under the absorption costing approach.

2. Prepare an income statement under the variable costing approach.