1. Is a variable costing income statement applicable to service operations? If so, provide a hypothetical example of variable costing income statements in a service operation.

a. Explain your example in detail and provide in-text citations.

2. Explain the difference between variable costing and absorption costing income statements.

a. Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured.

b. Explain the contrast between the two formats.