6. Below is Zed Company's Income Statement for the first year of operations. Zed Company Income Statement (Absorption Costing) for the year ended February 28, 2019 $3,600,000.0 Sales (120,000 units @ $30) Cost of Goods Sold Beginning Inventory COG Manufactured (132,000 units @ $13) COG available for sale Ending Inventory (12,000 @ $13) Cost of Goods Sold Gross Margin Selling & Admin Net Income $0.0 $1,716,000.0 $1,716,000.0 $120,000.0 $1,596,000.0 $2,004,000.0 $471,000.0 $1,533,000.0 Additional information: Production units: 132,000 Selling and Administrative expenses: Annual Fixed expense $240,000 Variable per unit $1.75 Direct materials $ 5.00 per unit Direct labor $ 4.00 per unit Variable FOH $1.00 per unit Fixed FOH ($396,000 total) $3.00 per unit 1) Prepare an income statement using Variable Costing 2) Show what the difference between income under variable costing and absorption costing is and why there is that difference