1 Sales (35,000 units) 2 Production costs (41,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead 7 Selling and administrative expenses: 3 4 5 6 8 9 Variable selling and administrative expenses Fixed selling and administrative expenses $4,100,000.00 2,255,000.00 1,025,000.00 615,000.00 $1,140,000.00 225,000.00 $10,500,000.00 7,995,000.00 1.365.000.00 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)?

Required: a Prepare an income statement according to the absorpton costing concept b. Prepare an income statement according to the variable costing concept. c. What is the reason for the alference in the amount or Operating uncome reported in (a) and (b)