Consider the following account balances (in thousands) for the Carolina Corporation: Assume Carolina Corporation starts and ends with no inventory. (i.e. All inventoriable costs are expensed in the year.) Product Period Variable Fixed 1/S Headings Contribution Cost of Fixed Cost Gross Operating Operating Revenue Variable Cost Carolina Corporation Direct manufacturing materials Materials Handling Costs Indirect manufacturing materials Manufacturing supervisory salaries Direct manufacturing labor Freight-in costs Plant insurance Depreciation of manufacturing plant, building, and equipment Plant utilities (75% dependent on volume) Plant repairs and maintenance (25% dependent on volume) Plant equipment leasing costs Corporate office rent, utilities and equipment Administrative support costs Marketing salaries Sales Commissions Distribution Costs Customer Service Costs (20% dependent on volume) Marketing supplies (90% dependent on volume) Revenues Total End of 2017 73,000 145,000 206,000 262.000 217,000 97,000 9,000 45,000 26,000 12,000 65,000 125,000 71,000 35,000 15,000 20,000 13,000 8,000 1,750,000 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so do not hard enter the answer. 1. Prepare an Absoption Costing Income Statement (through Operating Income) for 2017. Carolina Corporation Absorption Costing Income Statement Year Ended December 31, 2017 (in thousands) Account/Group $ Less: Equals: Less: Equals: 2. Prepare an Variable Costing Income Statement (through Operating Income) for 2017. Carolina Corporation Variable Costing Income Statement Year Ended December 31, 2017 (in thousands) Account/Group $ Less: Equals: Less: Equals