Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the f Sales (20,000 units) Production costs (26,000 units): $2,600,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $1,250,600 600,600 299,000 200,200 2,350,400 Selling and administrative expenses: Variable selling and administrative expenses $364,300 Fixed selling and administrative expenses 141,000 505,300 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended March 31 Line Item Description Sales Cost of goods sold Gross profit Selling and administrative expenses Operating income Amount 2,600,000 b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended March 31 Line Item Description Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income Feedback Amount Amount Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs.