The Bakery has the following information for last year:

Selling price (per unit)	$1.25
Variable production costs (per unit)	$0.20
Variable selling and administrative expenses (per unit)	$0.10
Fixed overhead production costs	$2,000
Fixed selling and administrative expenses	$800
Units produced	7,500
Units sold	7,000
Units in Beginning Inventory	0

1. How do I find the difference between the absorption costing method and the variable costing method?

2. How would I calculate the cost of ending inventory for the Bakery using the variable costing method?

3. How do I calculate the net income for the Bakery using the absorption costing method?