Company has no beginning and ending inventories, and reports the following information about its only product:
Direct materials used $29,000 Direct labor $17,000 Variable indirect production $13,000 Fixed indirect production $18,000 Variable selling and administrative expenses $22,000 Fixed selling and administrative expenses $11,000 Units produced and sold 10,000 Selling price per unit $25 Required:
A) Prepare an income statement using the contribution approach.
B) Prepare an income statement using the absorption approach.