Prior to the first month of operations ending October 31 Warshail Ins, estimated the following operating resuits: The compeny is evaluating a proposal to manufacture 25,600 units instead of 23, 200 units, thus creating an inventory, October 31 of 2,400 units. Manufocturing the additional units will not change sales, unit variable foctory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. 3. 1. Prepare an estimated income statement, comparing operating retumis if 23,200 and 25,600 units are manufactured in the absorption costing format. If an amount box does not require an entry leave in blank or enter "o:. a. 2. Prepare an estimated income statement, comparing operating results if 23,200 and 25,600 units are manufactured in the variable costing format. If an amount box does not require an entry leave it biank or enter " 0 ". does not require an entry leave it blank or enter "o* b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption costing income stotement? The increase in income from ogerations under absorption conting is caused by the allocation of. overhead cost over a number of units. Thus, the cost of goods sold is The dfference can also be emplaned by the amount of overhesd cest ineluded in the inventory, 5 mere Cteck My Wokk uses remaing