The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2021.

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 units

\#5. The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2021 . Variable Cost per Unit: \begin{tabular}{|l|r|} \hline Direct Materials & $3.00 \\ \hline Direct Labor & $2.50 \\ \hline Overhead & $1.20 \\ \hline Selling \& Admin & $2.35 \\ \hline \end{tabular} Fixed Costs (Total) \begin{tabular}{|l|r|} \hline Overhead & $50,000 \\ \hline Selling \& Admin & $45,000 \end{tabular} 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 units