In May, Limonade produced 14,000 cases of powdered drink mix and sold 17,000 cases, of which 3,000 were produced in April. The total April production was 15,000 . The sales price was $26, variable costs were $12 per case ( $9 manufacturing and $3 selling and administrative), and total fixed costs were $80,000($56,000 manufacturing and $24,000 selling and administrative). Limonade's May income statement using variable costing follows: (Click the icon to view the variable costing income statement.) Reference Requirements 1. Prepare the May income statement using absorption costing. 2. Is operating income using absorption costing higher or lower than variable costing income? Explain why. 3. Determine the balance in Finished Goods Inventory as of May 31. Requirement 1. Prepare the May income statement using absorption costing