Variable selling expenses are $1.10 per unit sold Fixed selling and administrative expenses total $154,000 1. Prepare an Absorption-Costing Income Statement down to Operating Income 2. Then prepare a Variable-Costing Income Statement More units were made then sold in this situation

Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $15.50 per unit. The company chose practical activityat 50,000 unitsto compute its predeter- mined overhead rate. Manufacturing costs are as follows: Direct materials Direct labor Variable overhead Fixed overhead 128,000 93,000 65,000 51,000