Santana Rey expects sales of Business Solutions’s line ofcomputer workstation furniture to equal 300 workstations (at asales price of $4,000 each) for 2019. The workstations’manufacturing costs include the following. Direct materials $ 710per unit Direct labor $ 310 per unit Variable overhead $ 80 perunit Fixed overhead $ 24,000 per year The selling expenses relatedto these workstations follow. Variable selling expenses $ 45 perunit Fixed selling expenses $ 3,200 per year Santana is consideringhow many workstations to produce in 2019. She is confident that shewill be able to sell any workstations in her 2019 ending inventoryduring 2020. However, Santana does not want to overproduce as shedoes not have sufficient storage space for many moreworkstations.

Complete the following income statements using absorptioncosting.

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 IncomeStatements Production volume Sales volume - 300 Workstations 300 workstations 320 workstations Under absorption costing,can the difference between production volume and sales volumeaffect the reported net income (loss)?

• omplete the following income statements using variablecosting.

  	BUSINESS SOLUTIONS Variable Costing Income Statements Production volume (units) 300 workstations 320 workstations Sales volume (units) Net income (loss) Under variable costing, cana company increase its net income by increasing production?