During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 40,000 mini refrigerators, of which 36,000 were sold. Operating data for the month are summarized as follows $8,280,000.00 1 Sales 2 Manufacturing costs 3Direct materials 4 Direct labor 5 Variable manufacturing cost $2,800,000.00 1200,000.00 00,000.00 0,000005,240,000.00 Fixed manufacturing cost 7Selling and administrative expenses: 8 Variable 540,000.00 Fixed 216,000.00 756,000.00 Required: 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept.* 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2) Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the