During 2015, M Co. sold 30000 units at $60 per unit. The beginning period showed 5000 units in inventory and produced 25000 units during the year. The following production costs and selling and administrative expenses were: Number of Units Unit cost Total costs Beginning inventory: Direct materials $33,500 Direct labor 77,500 Variable factory overhead 9,000 Fixed factory overhead 10,000 5,000 5,000 5,000 5,000 $6.70 15.50 1.80 2.00 Current period costs: Direct materials Direct labor Variable factory overhead Fixed factory overhead $175,000 405,000 45,000 50,000 25,000 25,000 25,000 25,000 $7.00 16.20 1.80 2.00 Selling and administrative expenses: Variable Fixed $65,000 45,000 Instructions: NOTE: SHOW ALL WORK. 1. Prepare both an absorption and variable costing income statement. 2. Determine and give reason for difference in income from operations in part (1)