1. Prepare statements of comprehensive income under variable and absorption costing for the year ended December 31. 2. What is Montre's operating income as a percentage of revenues under each costing method? 3. Explain the difference in operating income between the two methods. 4. Which costing method would you recommend to the CFO? Why? The Montre Company manufactures trendy, high-quality, moderately priced watches. As Montre's senior financial analyst, you are asked to recommend a method of inventory costi The CFO will use your recommendation to prepare Montre's statement of comprehensive income. The following data are for the year ended December 31. (Click the icon to view the data.) Assume standard costs per unit are the same for units in beginning inventory and units produced during the year. Also, assume no price, rate, or efficiency variances. Any production-volume variance is written off to COGS in the month in which it occurs. Requirement 1. Prepare statements of comprehensive income under variable and absorption costing for the year ended December 31. Begin by preparing the statement of comprehensive income under variable costing for the year ended December 31 . Complete the top half of the statement of comprehensive income first, and then complete the bottom portion. (Complete all answer boxes. Use parentheses or a minus sign for an operating loss.) ked to recommend a meth r ended December 31. Data rice, rate, or efficiency vari 31. op half of the statement of co pss.)