Income Statements under Absorption Costing and Vartable Costing Gallatin County Motors Inc. assembles and sells snowmobile angines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July Sales (20,000 units) $3,200,000 Production costs (26.000 units): Direct materiais 51.539.200 Direct labor 738,400 Variable factory overhead 369,200 Fixed factory overhead 247,000 2.093,000 Selling and administrative expenses Variable selling and administrative expenses 1440,500 Fixed selling and administrative expenses 173,600 622.100 If rebuired, round interim per unit calculations to the nearest cent a. Prepare an income statement according to the absorption costing concept Gallatin County Motors Inc. Absorption Costing Income Statement Fixed selling and administrative expenses 173,600 622,100 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 3,200,000 Cost of goods sold Gross profit Selling and administrative expenses 622,100 Operating income Feedback b. Prepare an income statement according to the variable costing concep Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales 3,200,000 Variable cost of goods sold Manufacturing margin 448,500 Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses 173,600 Total fixed costs Operating income