Income Statements under Abserption and Variable costing Shawnee Motors inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100%5 of capacity during the first month. The following data summarize the results for August: If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August b. Prepare an income statement according to the variable costing concept. c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? Under the Under method, the fixed manulacturing cost included in the cost of goods sold is matched with the revenues all of the fixed manufacturino cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the than will the variable costing income statement. income statement will have a higher income from operations