Variable and Absorption Costing-Service Company Jensen's Tailoring provides custom tailoring services. After the company's first year of operations, its owner prepared the following summarized data report:

Sales (500 completed jobs)						$100,000
Tailoring costs (550 jobs)
Direct labor						47,000
Manufacturing overhead
Variable						12,000
Fixed						9,000
Operating expenses
Variable						5,600
Fixed						5,800

a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

Absorption Costing Income Statement
Sales						Answer
Cost of Goods Sold:
Beginning Inventory					Answer
Direct labor					Answer
AnswerContribution marginGross profitOperating expensesManufacturing overheadVariable manufacturing overhead					Answer
Less: Ending Inventory					Answer
Cost of Goods Sold						Answer
AnswerContribution marginGross profitOperating expensesManufacturing overheadVariable manufacturing overhead						Answer
AnswerContribution marginGross profitOperating expensesManufacturing overheadVariable manufacturing overhead						Answer
Net Income (Loss)						Answer

b. Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

Variable Costing Income Statement
Sales						Answer
Variable cost of Goods Sold:
Beginning Inventory					Answer
Direct labor					Answer
AnswerContribution marginGross profitManufacturing overheadVariable manufacturing overheadVariable operating expenses					Answer
Less: Ending Inventory					Answer
Variable cost of goods sold						Answer
AnswerContribution marginGross profitManufacturing overheadVariable manufacturing overheadVariable operating expenses						Answer
AnswerContribution marginGross profitManufacturing overheadVariable manufacturing overheadVariable operating expenses						Answer
Fixed costs:
AnswerContribution marginGross profitManufacturing overheadVariable manufacturing overheadVariable operating expenses					Answer
Operating expenses					Answer
Total Fixed Cost						Answer
Net Income (Loss)						Answer

c. Assume that you must decide quickly whether to accept a special one-time order to alter 50 band costumes for $125 per costume. Which income statement presents the most relevant data? Answerabsorption costingvariable costing Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. $Answer