3.1 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 Number of Gallons sold Sales Price Unit Product Cost (variable costing) Contribution Margin Total Fixed Manufacturing Overhead Total fixed Selling & Administrative Variable Selling and Administrative Costs Inventory value under absorption costing 80,000 70,000 $3.00 per gallon $1.45 per gallon $84,000 ? $25,000 ? $29,500 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.