In May. VtaSpert produced 10,000 eases of powdered drink mix and soid 12,000 cases, of which 2,000 weve produced in Apni. The total Apel production was 15,000 . The sales price was $25, variable costs were $13 per case (\$10 manufacturing and $3 seling and administrative), and lotal fxed costs we:e $75,000 ( $60,000 manufacturing and $15,000 selling and adminstrative). VtaSporis May insome statement using varable costing folows: (Click the icon to view the variable costing income stimemert) Read the fociremeats VitaSport Income Statement (Variable Costing) Month Ended May 31 Net Sales'Revenue $300,000 Variable Costs: Variable Manufacturing Overhead Variable Selling and Administrative Costs Contribution Margin \$ 120,000 Fixed Costs: Fixed Manufacturing Overhead Fixed Selling and Administrative Costs Operating Income 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