Anderson Company produces sporting equipment. In 2019, the first year of operations, Conan produced 30,000 units and sold 20,000 units. In 2020, the production and sales results were exactly reversed. In each year, selling price was $150, variable manufacturing costs were $60 per unit, variable selling expenses were $20 per unit, fixed manufacturing costs were $800,000, and fixed administrative expenses were $300,000. Instructions a) Prepare a comparative income statement for 2019 and 2020 using variable costing (6 marks). b) Using a FIFO cost-flow, prepare a comparative income statement for 2019 and 2020 using absorption costing (6 marks). Round any cost rates to two decimal places. c) Reconcile and explain the differences in 2020 income from operations under the two costing approaches (4 marks).