During 2013, Life Works Inc had $10000 in sales commission, $2000 in administration costs of which $800 is fixed. They sold 8500 units and produced 10000 units. Their selling price per unit was $45. Direct material was $10, Direct labor was $7, Variable Overhead was $3.50. Fixed Overhead amounted to $7500.
Prepare an income statement under Variable and Absorption costing.
