Income Statements under Absorption Costing and Variable Costing results for March: If required, round interim per-unit calculations to the nearest cent. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Prepare an income statement according to the absorption costing concept. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Jnder the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under , all of the fixed manufacturing cost is leducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the income statement will have a higher operating income. Feedback VCheck My Work overhead. b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs