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 rst month. The following data summarize the results for July: Sales (19,500 units) $2,145,000 Production costs (25,000 units): Direct materials $1,017,500 Direct labor 487,500 Variable factory overhead 245,000 Fixed factory overhead 162,500 1,912,500 Selling and administrative expenses: Variable selling and administrative expenses $296,400 Fixed selling and administrative expenses 114.300 411,200 If required, round interim per-unit calculations to the nearest cent. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales J Cost of goods sold V Gross profit J Selling and administrative expenses V Operating income "WEEDS ) 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 J Variable cost of goods sold J Manufacturing margin J Variable selling and administrative expenses J Contribution margin J DEBUG Fixed costs: Fixed factory overhead costs J D Fixed selling and administrative expenses J C] Total fixed costs J Operating income J ||D|D