The following information relates to Axar Products for calendar year 2020, the company’s first year of operation: 

Units produced.........................................................20,000 

Units sold 18,000 Selling price per unit.....................$ 30 

Direct material per unit................................................$ 6 

Direct labor per unit.....................................................$ 4 

Variable manufacturing overhead per unit..............$ 2 

Variable selling cost per unit......................................$ 3 

Annual fixed manufacturing overhead............$160,000 

Annual fixed selling and administrative expense.............$ 80,000 

Required 

a. Prepare an income statement using full costing. 

b. Prepare an income statement using variable costing. 

c. Using the variable costing income statement, calculate the company’s break-even point in sales dollars and in units. Can the break-even point be calculated easily using the full costing income statement? Why or why not?