On July 31, 2016, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:

Rhys CompanyIncome Statement - Absorption CostingFor the Month Ended July 31, 20161Sales (92,000 units) $4,232,000.002Cost of goods sold: 3Cost of goods manufactured$2,950,000.00 4Less ending inventory (26,000 units)650,000.00 5Cost of goods sold 2,300,000.006Gross profit $1,932,000.007Selling and administrative expenses 282,000.008Income from operations $1,650,000.00 Required:A.Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $153,400 and the variable selling and administrative expenses were $110,400. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less or Plus and colons will automatically appear if it is required. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.B.Reconcile the absorption costing income from operations of $1,650,000 with the variable costing income from operations determined in (A).