Income statements under Absorption Costing and Variable Costing Syles (177,050 units) $1,700,000 Preduction costs (22,000 units ) : If required, round interim per-unit calculations to the eearett cent. a. Prepare an income statement according to the absorpton cosking concept: 8. Prepare an intome statembet according to the varlable costing concept. b. Prepare an income statement according to the variable costing conceot. fuctast f ceesk by wis b. Under variable cesting, the cost of geods manufactured includes only varibble manutacturing costs: c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the Jbsorption casing method, the fixed manufacturing cost inclused in the cost of goods sold is matched with the revenues, unde deducted in the period in which it is incurred, regardless of the ambunt of imventory change. Thus, when inventory increases, the F pins, Mo work significant changes in invertery levels eccuf