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 for 2016

Sales (500 completed jobs)						$200,000
Tailoring costs (550 jobs)
Direct labor						94,000
Manufacturing overhead
Variable						24,000
Fixed						18,000
Operating expenses
Variable						11,200
Fixed						11,600

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
Cost of Goods Sold:
Beginning Inventory
Direct labor
Contribution marginGross profitOperating expensesManufacturing overheadVariable manufacturing overhead
Less: Ending Inventory
Cost of Goods Sold
Contribution marginGross profitOperating expensesManufacturing overheadVariable manufacturing overhead
Contribution marginGross profitOperating expensesManufacturing overheadVariable manufacturing overhead
Net Income (Loss)

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

c. Assume that you must decide quickly whether to accept a special one-time order to alter 50 band costumes for $300 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