The Western Corporation manufactures a single product and has provided the following data for its most recent year of operations:

Selling price per unit $68 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $10 Direct labor $6 Variable manufacturing overhead $4 Fixed manufacturing overhead per year $220,000 Selling and administrative expenses:

Variable selling and administrative expense per unit sold $6 Fixed selling and administrative expense per year $61,000

During the year, 11,000 units were produced, and 10,000 units were sold. There was no beginning inventory.

1. Prepare an income statement to find the companys net operating income under variable costing.

2. Prepare an income statement to find the companys net operating income under absorption costing.

3. Using a different method (without preparing an income statement), find the companys net operating income under absorption costing.