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Santana Rey expects sales of Business Solutions's line of computer workstation furniture to equal 300 workstations (at a sales price of $3,600 each) for 2018. The workstations manufacturing costs include the following Direct materials Direct labor VarLable overhead Fixed overhead $ 710 per unit S 310 per unit 60 per unit $19,200 per year The selling expenses related to these workstations follow Variable selling expenses Pixed selling expenses $ 40 per unit $3,900 per year Santana is considering how many workstations to produce in 2018. She is confident that she will be able to sell any workstations in her 2018 ending inventory during 2019. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. 1. Complete the following income statements using absorption costing. Production volume 300 320 Cost of goods sold: workstations 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)? 2. Complete the following income statements using variable costing. BUSINESS SOLUTIONS Variable Costing Income Statements 300 320 Production volume (units) workstations workstations 300 300 Sales volume (units) workstationsworkstations Net income (loss) Under variable costing, can a company increase its net income by increasing production

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