Addams Family Co., a manufacturer of Halloween and cosplay costumes, has a fiscal year ending October 31. Its costs and sales information for this year are: Production costs Direct materials$40 per unit Direct labor$60 per unit Overhead costs for the year Variable overhead$2,100,000 Fixed overhead$8,400,000 Nonproduction costs for the year Variable selling and administrative$750,000 Fixed selling and administrative$5,000,000 Production and sales for the year Units produced105,000 units Units sold75,000 units Sales price per unit$360 per unitRequirement 1: Prepare the Companys income statement using variable costing as of October 31.Requirement 2: Under absorption costing, net income would have been __________ (higher/lower/the same) by $_____________. Show your work.