Chapter 6-Demonstration Problem Major Company began operations on January 1, 2015. Cost and sales information for its first calendar year is summarized below: Manufacturing costs: $50 per unit $25 per unit Direct materials Direct labor Factory overhead costs for the year: Variable overhead Fixed overhead Nonmanufacturing costs Variable selling and administrative $10 per unit Fixed selling and administrative Production and sales data: Units produced, 2015 Units sold, 2015 Units in ending inventory, 2015 Sales price per unit $10 per unit $1,000,000 $5,000,000 100,000 units 80,000 units 20,000 units $500 per unit Required: 1. Prepare an income statement for the company for 2015 under absorption costing. 2. Prepare an income statement for the company for 2015 under variable costing. 3. Prepare a schedule to convert variable costing income to absorption costing income for the years 2015