Prepare and compare income statements for one period under both absorption and variable costing.

E$12\mathrm{.}6($LO $3),$ AP $($Ethics When Mr$,$ OLeery's exceeded its sales goal for bicycle racks at the end of the calendar year. Johnny could hardly wait to run the financial statements. Johnmy the accountant, had told his kids that he d upgrade their bicycles with his bonus $($if he got one$),$ and he didn't want them to be disappointed. All employees received bonuses if company$-$wide profit exceeded expectations. The information for the financial statements is as follows.

$\backslash$table$[[$Budgeted fixed$-$MOH,$$150,000$