Waldron Company manufactures a single product that it sells for $20.00. The var

Waldron
Company manufactures a single product that it sells for $20.00. The
variable costs to manufacture one unit are as follows: direct materials
$5.00; direct labor $4.00; and manufacturing overhead $2.50. Total
fixed manufacturing costs amount to $150000 per year. The variable
operating costs of the company are: variable selling costs $2.50 per
unit sold; variable administrative costs $1.50 per unit sold. The fixed
operating costs are: $200000 selling and $250000 administrative.The
company produced 300000 units during the year and sold 270000 of the
units produced. There was no beginning inventory. Estimated and actual
fixed manufacturing costs were the same for the year.Required:(1) Prepare an income statement for the year using full absorption costing.(2) Prepare an income statement for the year using variable costing.