Zoyota Zorolla has been producing and selling $100,000$ units per year. They have excess capacity, and there are no beginning and ending inventories. The following budget was prepared for the next year:

Selling price per unit

Direct materials per unit

Direct labor per unit

Variable manufacturing overhead per unit

Variable selling and administrative per unit

Total fixed manufacturing overhead costs

Total fixed selling and administrative

$$11\mathrm{.}00$

$$5\mathrm{.}00$

$$3\mathrm{.}00$

$$1\mathrm{.}00$

$$0\mathrm{.}25$

$$50,000$

$$15,000$

Required:

A$)$ Prepare an income statement using the contribution approach.

B$)$ Prepare an income statement using the absorption approach.