Huang Company operates with a single product. The following simple income statement relates to last year when sales units totaled26,500

Variable Costing GAAP Absorption Costing

Total $ Per unit $ Total $

Sales 530,000 20.00 Sales x

Variable COGS 185,500 7.00 COGS x

Variable S&A expense 92,750 3.50 Gross margin x

Contribution margin 251,750 9.50 S&A expenses x

Fixed Man Ovrhd expenses 121,500 Net operating income x

Fixed S&A expenses 42,000

Net operating income 88,250

Huang Company unit production for the year totaled 27,000.

Prepare a GAAP income statement for Huang Company. Reconcile any difference between the Variable costing and GAAP net operating incomes.