Brady Products Manufacturers, which has only one product, has provided the following data concerning its first month of operations:

Selling price	$120.00
Units produced	4,000 units
Units sold	3,600 units
Units in ending inventory	400 units
Variable manufacturing costs	$90.00
Variable selling and administrative costs	$8.00	per unit sold
Fixed manufacturing overhead costs	$56,000
Fixed selling and administrative costs	$21,600

The company produces the same number of units every month, although the sales in units vary from month to month. The companys variable costs per unit and total fixed costs are expected to be constant from month to month.

Required:
(a)	Calculate the operating income for the month under variable costing	(4 marks)
(b)	Prepare an income statement for the month using the absorption costing format and the absorption costing method.	(4 marks)
(c)	Explain the difference between the income reported by variable and absorption costing.	(2 marks)