Income Statements under Absorption Costing and Variable Costing Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. b. Prepare on income statement according to the variable costung concept. c. What is the reavon for the ofference in the amount of openting income reported in (a) and (b)? Under the mothod, the fixed manufacturing cost included in the cost of geods scld is matched with the reverves. Under of the heed manufacturing coet is deducted in the poried in which it is incurred, regandiess of the amount of inventory change. Thus, when inventory increases, the income statement will have a higher operating income