Potter Corporation produces one product. The following per unit cost information is available: Direct materials $ 7.00 Direct labor 15.00 Variable overhead 8.00 Variable Selling and Admin. 2.00 Fixed overhead costs are $100,000 per peiod and fixed selling and administrative costs are $70,000 per period. The selling price is $70 per unit. REQUIRED: A. Prepare an absorption costing (traditional) income statement assuming: 1. Production is 8,000 units and sales are 8,000 units. 2. Production is 8,000 units and salesa are 9,000 units. 3. Production is 8,000 units and sales are 6,000 units. Unit Sales 8,000 Sales Cost of Goods Sold Gross Profit Selling and Admin Net Income 9,000 6,000 B. Prepare a variable costing income statement assuming: 1. Production is 8,000 units and sales are 8,000 units. 2. Production is 8,000 units and sales are 9,000 units. 3. Production is 8,000 units and sales are 6,000 units. Unit Sales 9,000 8,000 6,000 Sales Variable Costs Contribution Margin Fixed Costs Net Income C. Explain the difference (or lack of difference) in the absorption costing net income and the variable costing net income for each case