Grand Prix Motors assembles and sells cars. Data relating to April follows:

Selling price per unit	$24,000
Unit data:
Beginning Inventory	0
Production	500
Sales	350
Variable costs per unit:
Direct Material	$6,700
Direct Labor	$1,500
Variable Manufacturing Overhead	$1,800
Selling and Administrative Cost	$3,000
Fixed costs:
Manufacturing Overhead	$2,000,000
Selling and Administrative	$600,000

Prepare income statements for April under absorption costing and variable costing. Create tables to organize your answer.

Explain (be sure to use specific numbers) why the operating income amounts from the two methods differ.