Prepare a 2011 income statement for Grunewald Company using variable costing. Prepare a 2011 income statement for Grunewald Company using absorption casting. Explain the differences in operating incomes obtained in requirement 1 and requirement 2. Grunewald's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this create for the supervisors? What modifications could Grunewald management make to improve such a plan? Explain briefly