Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,900 tons of plastic and sold 3,920 tons. In 2017, the production and sales results were exactly reversed, In each year, the selling price per ton was $2,500 variable manufacturing costs were 18% of the sales price of units produced, variable selling expenses were 8% of the selling price of units sold, fixed manufacturing costs were $3,626,000, and fixed administrative expenses were $510,000. Prepare indome statements for each year using variable costing Income Statement For the Year Ended December 31, 2016 Variable Costing Sales Variable Cost of Goods Sold Inventory, January 1 Variable Costs of Goods Manufactured Costs of Goods Available for Sale Inventory, December 31 Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Administrative Expenses Net Income/Loss) ACKSON COMPANY Income Statement Variable Costing Prepare income statements for each year using absorption costing. JACKSON COMPANY Income Statement Absorption Costing JACKSON COMPANY Income Statement Absorption Costing JACKSON COMPANY Income Statement Absorption Costing eTextbook and Media eTextbook and Media Reconcile the differences each year in net income under the two costing approaches. 2016 2017 Variable costing net income Fixed manufacturing overhead expensed with variable costing $ Less: Fixed manufacturing averhead expensed with absorption costing Difference Absorption costing net income