Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (17,000 units). Production costs (22,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $2,210,000 $1,058,200 508,200 253,000 169.400 1,988,800 Selling and administrative expenses: Variable selling and administrative expenses $308,300 Fixed selling and administrative expenses 119,300 427.600 If required, round interim per-unit calculations to the nearest cent. If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Sales Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold Gross profit Selling and administrative expenses Operating income 00000 b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income Foodback 00 00000