ents under variable and absorption costing for the year ended December 31, 2020 under variable costing for the year ended December 31, 2020. Complete the top half of the income statement first, then complete the bottom portion e costing Requirements 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2020 2. What is Zwatch's operating income as percentage of revenues under each costing method? 3. Explain the difference in operating income between the two methods 4. Which costing method would you recommend to the CFO? Why? Print Done der absorption costing for the year portion (Label any variances as tv Absorption costing OLI analyst, you are asked to recommend a method of inventory costing. The chief financi The following data are for the year ended December 31, 2020: Click the icon to view the assumptions.) *** ats under variable and absorption costing for the year ended December 31, 2020, under variable costing for the year ended December 31, 2020. Complete the top half of the income statement first, then complete the bottom portion costing Data Table Beginning inventory, January 1, 2020 Ending inventory, December 31, 2020 2020 sales Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 84,000 units 30,000 units 277,000 units $2450 per unit $4.80 per unit $1.00 per unit sold $1,044,000 5,800 40 units per machine-hour $1,120,000 Label any variano der absorption costing for Absorption costing Print Done Time Click the icon to view the data) Read the GB year ended December 31, 2020 (Click the icon to view the assumptions) da method of inventory costing the chief francofoni Requirement 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2020, Begin by preparing the income statement under variable conting for the year ended December 31, 2020. Complete the top half of the income statement fest, the complete the bottom portion Vanable costing Now prepare the income toment under brinting for the year anded December 31, 2020 on the recommend the complete the internet Absorption costing Requirement 2. What is watch's operating como as percentage of revenues or each costing method Pound the percentage to the port XXN Operating income of revenues Vartoto Absorption costing Requirement. Explain the trece neperating income between the Opening income using a costing than operating coming Motion og human bocor Requirement. Which conting would you recommend to the CFO' Why? The Coning method should be recommended as consider