Pepmax, Inc. started its operations only this year. The following accounts were provided for its financial statement presentation: Total units produced Total units sold Selling price per unit of Total Variable costs: grubong gats Direct materials Direct labor sluborbidin Fixed costs: Instructions: Ilmain legge to oli eganta fin Factory overhead Selling and marketing expenses General & administrative expenses Factory overhead Selling & marketing expenses General & administrative expenses 16,500 14,500 P12.00 P44,000 01 000,0 36,000 16,000 10,000 2,000 40,000 10,000 10,000 1. Prepare an income statement using the absorption costing method. 2. Prepare an income statement using the variable costing method. 3. Identify the cause of difference in net income.