Azalea Manufacturing manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: (1) (Click the icon to view the data.) Read the tequirements, Requirement 1. Prepare an incomb statement for the upooming year using variable costing More info - Salos price por unt \$52 - Variable manufacturing oosts per unit manufactured (OM, DL and vanable MOHi) $32 - Vaniable eperating expenses per unit sold $1 - Foced manufacturing overhead (MOH) in tatal foc the year $187,000 - Fixed eperating expenses in total for the year $42,000 - Units manufactured during the year 17,000 unis - Units sold during the year 14,000 units Requirement 2. Prepare an income statement for the upcocting year using absorption costing Azalea Manufacturing manufactures a single product. Cost, sales, and production information for the compary and its single product is as follows: (1. (Click the icon to view the data:) Read the tequariments Requirement 2. Prepare an income stasement for the upcoming year using absorption costing Hequirement 3. What causes the diference in income between the two methods? When inventory leveis operating income wil be greater under absorption costing than it is under vatable costing This is because under is experised immediately as a period cost (operating expense). Under Geods Sold) unti the invenlory is sold, lesing a higher cperating income due to less being expensed