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Gibson Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products. Units Year Produced Units Sold Production and Sales 4,000 4,000 2018 4,000 6,000 2019 Cost Data Direct materials Direct labor $ 13.7 per unit $ 22.9 per unit $ 12.0 per unit $103,200 Manufacturing overheadvariable Manufacturing overheadfixed Variable selling and administrative expenses Fixed selling and administrative expenses 8.1 per unit sold $ 54,000 (Assume that selling and administrative expenses are associated with goods sold.) Levine sells its products for $108.3 per unit. Required a. Prepare income statements based on absorption costing for 2018 and 2019. b. Since Levine sold the same number of units in 2018 and 2019, why did net income increase in 2019? d. Determine the costs of ending inventory for 2019 e. Prepare income statements based on variable costing for 2018 and 2019. Answer is not complete Answer is not complete Complete this question by entering your answers in the tabs below Req B Req D Req A 2018 Req A 2019 Req E 2018 Req E 2019 Prepare income statements based on variable costing for 2019. (Do not round intermediate calculations.) GIBSON MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, 2019 $ 433,200 Cost of Goods Sold Direct materials Direct labor 291,600 Variable manufacturing overhead (97,200) 194.400 Contribution margin 238,800 riable selling and administrative 32.400 Fixed manufacturing overhead 103,200 Fixed selling and administrative expenses 54,000 $ 49,200 Net income Req E 2018 Req E 2019 Answer is not complete Complete this question by entering your answers in the tabs below Req B Req D Req E 2018Req E 2019 Req A 2018 Req A 2019 Prepare income statements based on variable costing for 2018. (Do not round intermediate calculations.) IBSON MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, 2018 433,200 Cost of Goods Sold Direct materials 194,400 Direct labor Variable manufacturing overhead 194.400 Contribution margin able selling and administrative 238,800 32.400 Fixed manufacturing overhead 103,200 Fixed selling and administrative expenses 54,000 49.200 Net income Req D Req E 2019> Answer is not complete Complete this question by entering your answers in the tabs below Req A 2018Req A 2019 Req B Req D Req E 2018 Req E 2019 Prepare income statements based on absorption costing for 2019. (Do not round intermediate calculations.) GIBSON MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, 2019 Revenues $ 433,200 Cost of Goods Sold Direct materials 394,800 Direct labor (131,600) Manufacturing overhead 263,200 Gross margin 170,000 ling and administrative 32.400 ses Selling and administrative 54,000 nses $ 83,600 Net income Req A 2018 Req B> Answer is not complete Complete this question by entering your answers in the tabs below Req A 2018Req A 2019 Req B Req D Req E 2018 Req E 2019 Prepare income statements based on absorption costing for 2018. (Do not round intermediate calculations.) GIBSON MANUFACTURING Absorption Costing Income Statement For the Year Ended Dec. 31, 2018 Revenues $ 433,200 Cost of Goods Sold Direct materials Direct labor 297,600 Manufacturing overhead 297,600 Gross margin 135,600 ling and administrative 32,400 Selling and administrative 54,000 $ 49,200 Net income Req A 2018 Req A 2019>