During the first month of operations ended March $31,$ IceBox Fridgeration Company manufactured $165,000$ mini refrigerators, of which $150,000$ were sold. Operating data for the month are summarized as follows:$1$Sales$$$$11,250,000\mathrm{.}002$Manufacturing costs:$3$Direct materials$$1,980,000\mathrm{.}004$Direct labor$4,290,000\mathrm{.}005$Variable manufacturing cost$412,500\mathrm{.}006$Fixed manufacturing cost$2,475,000\mathrm{.}009,157,500\mathrm{.}007$Selling and administrative expenses:$8$Variable$$450,000\mathrm{.}009$Fixed$1,125,000\mathrm{.}001,575,000\mathrm{.}00$Required:$1.$Prepare an income statement based on the absorption costing concept$\mathrm{.}2.$Prepare an income statement based on the variable costing concept$\mathrm{.}3.$Explain the reason for the difference in the amount of operating income reported in $(1)$ and $(2).$