On June 30, 2016, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept:

Tudor Manufacturing Co. $7,510,000.00 $7.200,000.00 Income Statement - Variable Costing For the Month Ended June 30, 2016 1 Sales (400,000 units) 2 Variable cost of goods sold: 3 Variable cost of goods manufactured (480,000 units $15 per unit) 4 Less ending inventory (80,000 units $15 per unit) Variable cost of goods sold 6 Manufacturing margin 7 Variable selling and administrative expenses & Contribution margin 1,200,000.00 5 6,000,000.00 $1,510,000.00 89,000.00 $1,421,000.00 9 Fixed costs: $134,400.00 10 Fixed manufacturing costs 11 Fixed selling and administrative expenses 66,000.00 200,400.00 12 Income from operations $1,220,600.00 Labels and Amount Descriptions Labels and Amount Descriptions Contribution margin Cost of goods manufactured Cost of goods sold Ending inventory Gross profit Income from operations Manufacturing margin Sales Selling and administrative expenses Variable cost of goods sold A. Prepare an absorption costing income statement. 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. Tudor Manufacturing Co. Income Statement - Absorption Costing For the Month Ended June 30, 2016 1 2 Label 3 4 5 6 7 8 B. Reconcile the variable costing income from operations of $1,220,600 with the absorption costing income from operations previously determined. Enter all amounts as positive numbers. Tudor Manufacturing Co. Income from Operations - Absorption vs. Variable Costing For the Month Ended June 30, 2016 1 Variable costing income from operations 2 Absorption costing income from operations 3 Difference