With the information provided, please answer the following:

Potter Corporation produces one product. Its costs include direct materials of S3 per unit direct labor of $15 per unit; variable overhead of $7 per unit; fixed overhead of $80,000 per period; variable selling costs of S2 per unit and fixed selling and administrative costs of $25,000 per period. The selling price is $60 per unit Prepare an absorption costing (traditional) income statement and a variable costing assuming: 1. Production is 8,000 units and sales are 8,000 units 2. Production is 8,000 units and sales are 7,000 units 3. Production is 8,000 units and sales are 10,000 units Explain any difference in the net incomes for each case. a. b