E'Lont company begin operation this year. During this first year, the company produced 300,00 units and sold 250,000 units. Its income statement under absorption costing for this year follows. Selling and administrative expenses consist os$1,200,000 in annual fixed expenses and $4 per unit in variable selling and administrative expenses. The company's product cost of $7.50 per unit is computed as follows. Prepare the company's income statement under variable costing. Explain any difference between the company's income under variable costing (from part 1) and the income report above