3 Succulent juice Company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year of operations. Number of Gallons Produced 80,000 Number of Gallons sold 70,000 Sales Price $3.00 per gallon Unit Product Cost (variable costing) $1.45 per gallon Contribution Margin $84,000 Total Fixed Manufacturing Overhead Total fixed Selling & Administrative $25,000 Variable Selling and Administrative Costs Inventory value under absorption costing $29,500 3.1 Prepare an Income Statement for Succulent using the Absorption Costing Method. (Hints: How many units were in inventory? What was the cost per unit? Why is the CM only $84,000?). Sales COGS Gross Margin SG&A Net Income 3.2 Explain in one or two sentences, the key difference between the net income under Absorption and the net income under Variable costing. Determine the variable costing net income. Do not prepare a variable costing income statement