During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 60,000 mini refrigerators, of which 54,000 were sold. Operating data for the month are summarized as follows: 1 Sales 2 Manufacturing costs: 3 Direct materials $10,260,000.00 $5,100,000.00 4 Direct labor 1,800,000.00 5 Variable manufacturing cost 1,200,000.00 6 Fixed manufacturing cost 840,000.00 8,940,000.00 7 Selling and administrative expenses: 8 Variable $972,000.00 9 Fixed 324,000.00 1,296,000.00 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 operating income reported in (1) and (2).