Carol Garcia, CEO of Sheridan Industries, is concerned about the recent volatility in the company's operating income. She believes that since the number of units sold has been fairly stable over the past three years that operating income also should have been stable. Carol asked Steven Lewis, Sheridan's inventory manager, to help her understand the issue. Steven reviewed the company's records and compiled the following changes to Finished Goods Inventory (in units) for the years 2019, 2020, and 2021. Year 2019 2020 2021 Beginning inventory 1,000 2,000 500 Production 40,000 38,000 40,000 Sales (39,000) (39,500) (39,500) Ending inventory 2,000 500 1,000 Steven also gathered the 2019 income statements prepared using absorption costing and variable costing, which follow. Income Statement-Absorption Costing Sales $ 4,485,000 Cost of goods sold Units in beginning inventory (90,000) Units sold from current year production (3,420,000) Total cost of goods sold (3,510,000) Gross margin 975,000 Selling expense (625,000) Operating Income $ 350,000 Income Statement-Variable Costing Sales $ 4,485,000 (2,028,000) Variable production expenses Variable selling expenses (156,000) Contribution margin 2,301,000 Fixed manufacturing expenses (1,520,000) Fixed selling expenses (469,000) Operating income $ 312,000 Prepare variable and absorption costing income statements for 2020 and 2021. Assume that sales price remains constant across all years. (Round answers to O decimal places, eg. 5,275.) Income Statement-Absorption Costing 2020 2021 Sales $ 4542500 4542500 Cost of goods sold 3,669,500 -3555000 Gross margin 908500 987500 Fixed selling costs -469000 i - 469000 i Variable costs - selling -158000 i -158000 i Operating Income $ 281500 $ LA 360500