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Santana Rey expects sales of Business Solutionss line of computer workstation furniture to equal 300 workstations (at a sales price of $3,200 each) for 2019. The workstations manufacturing costs include the following.

Direct materials	$	740		per unit
Direct labor	$	340		per unit
Variable overhead	$	80		per unit
Fixed overhead	$	24,000		per year

The selling expenses related to these workstations follow.

Variable selling expenses	$	40	per unit
Fixed selling expenses	$	3,300	per year

Santana is considering how many workstations to produce in 2019. She is confident that she will be able to sell any workstations in her 2019 ending inventory during 2020. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing.

Complete the following income statements using absorption costing. Production volume Cost of goods sold: 300 workstations 320 workstations Cost of goods sold per unit Number of workstations sold Total cost of goods sold BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? BUSINESS SOLUTIONS Variable Costing Income Statements 300 Production volume (units) workstations Sales volume (units) 320 workstations Net income (loss) Under variable costing, can a company increase its net income by increasing production

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