During the first month of operations ended March 31, 2016, Hip and Conscious Clothing Company produced 55,500 designer cowboy hats, of which 51,450 were sold. Operating data for the month are summarized as follows:

1	Sales		$771,750.00
2	Manufacturing costs:
3	Direct materials	$471,750.00
4	Direct labor	127,650.00
5	Variable manufacturing cost	61,050.00
6	Fixed manufacturing cost	55,500.00	715,950.00
7	Selling and administrative expenses:
8	Variable	$36,015.00
9	Fixed	25,725.00	61,740.00

During April, Hip and Conscious Clothing produced 47,400 designer cowboy hats and sold 51,450 cowboy hats. Operating data for April are summarized as follows:

1	Sales		$771,750.00
2	Manufacturing costs:
3	Direct materials	$402,900.00
4	Direct labor	109,020.00
5	Variable manufacturing cost	52,140.00
6	Fixed manufacturing cost	55,500.00	619,560.00
7	Selling and administrative expenses:
8	Variable	$36,015.00
9	Fixed	25,725.00	61,740.00

	Required:
1.	Using the absorption costing concept, prepare income statements for (a) March and (b) April.*
2.	Using the variable costing concept, prepare income statements for (a) March and (b) April.*
3a.	Explain the reason for the differences in the amount of income from operations in (1) and (2) for March.
3b.	Explain the reason for the differences in the amount of income from operations in (1) and (2) for April.
4.	Based on your answers to (1) and (2), did Hip and Conscious Clothing Company operate more profitably in March or in April?