Income Statements under Absorption and Variable 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: Sales (12,500 units) Production costs (16,000 units): $1,625,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $769,600 369,600 184,000 123,200 1,446,400 Selling and administrative expenses: Variable selling and administrative expenses $224,200 Fixed selling and administrative expenses 86,800 311,000 If required, round interim per-unit calculations to the nearest cent. b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Fixed costs