Bressler Company sells its products for $33 each

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Bressler Company sells its products for $33 each. The current production level is 50,000 units, although only 40,000 units are anticipated to be sold.

 

Unit manufacturing costs are:
Direct materials	$6.00
Direct manufacturing labor	$9.00
Variable manufacturing costs	$4.50
Total fixed manufacturing costs	$180,000
Marketing expenses	$3.00 per unit, plus $60,000 per year
Required:
a. Prepare an income statement using absorption costing.
b. Prepare an income statement using variable costing.