Income Statements under Absorption Costing and Variable Costing If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Vheck My Work b. Prepare an income statement according to the variable costing concept. Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)