Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at \100 of capacity during the first month. The following data summarize the results for July: If required, round interim per-unit calculations to the nearest cent. b. Prepare an income statement according to the variable costing concept. Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the \\( \\quad \\checkmark \\) method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under \\( \\checkmark \\), all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the \\( \\checkmark \\) income statement will have a higher operating income