Income Statements under absorption Costing and Variable Costing Gallatin County Motors Inci assembles and sells snowmobile engines, The company began operations on fuly 1 and operated at 1009 of capacity during the first month, The following data summarize the results for July: If required, round interim per-urit calculations to the nearest cent. a. Fiepare an incorse statement accorting to the absorption costing concept. b. Prepare an income statement accorsing to the variable costing concept. c. What is the reasen for the diference in the amount of eperating intome reported in (a) and (b)? Under the tevenues. Hinder method, the fixed masufacturieg cost included in the cost of goods sold is matched with the regardless of the amount of inventory change, Thus, when inventory increales, the have a higher operating income