During the first month of operations ended March $31,$ IceBox Fridgeration Company manufactured $50,000$ mini refrigerators, of which $44,000$ were

sold. Operating data for the month are summarized as follows: 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 operating income reported in $(1)$ and $(2).$