please give the explanation. Thank you.

Variable and Absorption Costing Ansara Company had the following abbreviated income statement for the year ended December 31, 2012: (in millions) Sales $18,330 $15.580 1.650 Cost of goods sold Selling, administrative, and other expenses Total expenses Income from operations $17.230 $1,100 Assume that there were $3,990 million fixed manufacturing costs and $910 million fixed selling, administrative, and other costs for the year. The finished goods inventories at the beginning and end of the year from the balance sheet were as follows: January 1 December 31 $2,180 million $2.540 million Assume that 40% of the beginning and ending inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period. a. Prepare an income statement according to the variable costing concept for Ansara Company for 2012 a. Prepare an income statement according to the variable costing concept for Ansara Company for 20Y2. Ansara Company Variable Costing Income Statement For the Year Ended December 31, 20Y2 (in millions) Sales Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Fixed costs: b. Explain the difference between the amount of income from operations reported under the absorption costing and variable costing concepts. The income from operations under the variable costing concept be the same as the income from operations under the absorption costing concept when the inventories either increase or decrease during the year. In this case, Ansara's inventory meaning it sold than it produced. As a result, the income from operations under the variable costing concept will be than the income from operations under the absorption costing concept. The reason is because the variable costing concept deduct the fixed costs in the period that they are incurred, regardless of changes in inventory balances