1. Prepare an income statement using full costing, and variable costing.

The following information relates to Dorian Industrial for fiscal 2014, the companys first year of operation:

Units produced	417,000
Units sold	403,700
Selling price per unit	$	49
Direct material per unit	$	15
Direct labor per unit	$	5
Variable manufacturing overhead per unit	$	1
Variable selling cost per unit	$	0.02
Annual fixed manufacturing overhead	$	1,251,000
Annual fixed selling expense	$	285,000
Annual fixed administrative expense	$	119,000