The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2016.
	Selling price per unit	$12.50
	Variable Cost per Unit:
	Direct Materials	$3.00
	Direct Labor	$2.50
	Overhead	$1.20
	Selling & Admin	$2.35
	Fixed Costs (Total)
	Overhead	$50,000
	Selling & Admin	$45,000
Required:
a. Prepare an income statement using the contribution approach for both scenarios
b. Prepare an income statement using the absorption approach for both scenarios
Scenario 1
Windy Wind Chime has produced and sold 100,000 units
Scenario 2
Windy Wind Chime has produced 100,000 units but sold 120,000 unis