Income Statements under Absorption and Variabie Costing Shawnee Motors Inc. assembles and sells Mp3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: If required, round interim per:unit calculations to the ncarest cent. a. Prepare an income statement according to the absorption costing concept. If required, round interim periunit calculations to the ncarest cent. a. Prepare an income stotement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept. b. Prepare an income statement according to the variabie costing concept. c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under 7, all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardiess of the amount of inventory change. Thus, when inventory increases, the income statement will have a higher income from operations than will the variable costing income statement