During the first month of operations ended May 31, 2016, Frost Point Fridge Company manufactured 40,000 mini refrigerators, of which 36,000 were sold. Operating data for the month are summarized as follows: 1 Sales $8,280,000.00 2 Manufacturing costs: 3 Direct materials $2,800,000.00 4 Direct labor 1,200,000.00 5 Variable manufacturing cost 800,000.00 6 Fixed manufacturing cost 440,000.00 5,240,000.00 7 Selling and administrative expenses: 8 Variable $540,000.00 9 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 statement heading. Less, Plus or colons (:) will automatically appear if required. If a net loss is incurred, enter that amount as a negative number using a minus sign.