Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (179,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 159,000 units during the month but sold 179,000 units at $500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Total Number Unit Cost of Units Cost Manufacturing costs in February 1 beginning inventory: Variable Fixed Total Manufacturing costs in February: 20,000 $250.00 $5,000,000 20.000 27.00 540,000 $277.00 $5,540,000 Variable 159,000 $250.00 $39,750,000 Fixed Total 159,000 31.20 4,960,800 $281.20 $44,710,800 Selling and administrative expenses in February: Variable Fixed 179,000 179,000 20.80 $3,723,200 3.00 537,000 Total 23.80 $4,260,200 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Prepare an income statement according to the absorption costing concept for February. Enter all amounts as positive numbers. Sales Cost of goods sold: Beginning inventory Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Operating income b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Sales Variable cost of goods sold Manufacturina marain Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income