Variable Costing and Segment Reporting

The following information relates to Vice Versa Ventures for calendar year 20XX, the companys first year of operations.

Units produced ... 20,000

Units sold ... 17,000

Selling price per unit ... $35

Direct material per unit ... $5

Direct labor per unit ...... $5

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

Prepare an income statement using full costing. (b) Prepare an income statement using variable costing.