Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: \begin{tabular}{|l|l|l|} \hline Sales (12,500 units) & & $6,250,000 \\ \hline Production costs (15,000 units): & $1,800,000 & \\ \hline Direct materials & 1,275,000 & \\ \hline Direct labor & 225,000 & \\ \hline Variable factory overhead & 600,000 & 3,900,000 \\ \hline Fixed factory overhead & & \\ \hline Selling and administrative expenses: & & \\ \hline Variable selling and administrative & 125,000 & \\ \hline expenses & & 170,000 \\ \hline \begin{tabular}{c} Fixed selling and administrative \\ expenses \end{tabular} \end{tabular} a. Prepare an income statement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)