Instructions be started on July 1 , one month in the future. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed. The controller has been asked by the president of the company for advice on whether to continue production during June or to suspend the manufacture of solvent until July 1 . The following data have been assembled: Celecia Industries Inc. Income Statement-Solvent For the Month Ended May 31 \begin{tabular}{|r|l|r|} \hline 1 & Sales (25,000 units x $15 per unit) & $375,000.00 \\ \hline 2 & Cost of goods sold & (256,250.00) \\ \hline 3 & Gross profit & $118,750.00 \\ \hline 4 & Selling and administrative expenses & (77,500.00) \\ \hline 5 & Operating loss & $41,250.00 \\ \hline \end{tabular} The production costs and selling and administrative expenses, based on production of 25,000 units in May, are as follows: beginning and end of June is not expected to be significant (material). Required: 1. Prepare an estimated income statement in absorption costing form for June for solvent, assuming that production continues during the month. 2. Prepare an estimated income statement in variable costing form for June for solvent, assuming that production continues during the month. 3. What would be the estimated operating loss if the solvent production were temporarily suspended for June? 4. What advice should you give to management