Kindly answer this question with explanation. Thank you

Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Sales 75.000 units) $7,500,000 Production costs (80,000 units) Direct material 2,200,000 1,800,000 Direct labar Manufacturing overhead: Variable 1,360,000 800,000 Fixed Operating expenses: Variable Fixed Depreciation on equipment Real estate taxes Personal property taxes inventory Personnel department expenses 420,000 600,000 150,000 45,000 72,000 75.000 equipment) a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales 5 7.500.000 Cost of Goods Sold: Beginning Inventory Direct materials Direct labor Gross profit Less: Ending Inventory Cost of Goods Sold 2,200,000 1,900,000 3,500,000 X OX OX Net Income (LOSS) $ 628,125 x b. Prepare an income statement based on variable costing- Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. 5 7.500.000 Variable Costing Income Statement Sales Variable cost of Goods Sold: Beginning Inventory Direct materials 2.062.500 x Direct labor 1.687.500 x Variable manufacturing 1,275,000 X Less: Ending Inventory OX Variable cost of goods sold Fixed costs: x Operating expenses Total Fixed Cost Net Income (Loss) $ 531,250 X C. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $75 per unit. Which income statement presents the most relevant data? absorption costing X Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. SOX