1 Sales (31,000 units) 2 Production costs (38,000 units): 5 Direct materials 4 Direct labor 5 Variable factory overhead $3,040,000.00 1.710,000.00 6 Fixed factory overhead $7,750,000.00 950,000.00 570,000.00 6,270,000.00 7 Selling and administrative expenses: 8 Variable selling and administrative expenses $1,120,000.00 9 Fixed selling and administrative expenses 200,000.00 1,320,000.00 Required: a. Prepare an income statement according to the absorption costing concept.* b. Prepare an income statement according to the variable costing concept.* c. What is the reason for the difference in the amount of Operating income reported in (a) and (b)? * Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative. Expenses should be positive.