Problem For the year ended December 31, 2019, Black n' Red Manufacturing Company sold 60,000 units of their Beltone Brand air purifier at $30.00 per purifier. At January 1, 2019, the beginning of period, there were 10,000 units in inventory and Black n' Red Manufacturing Company manufactured 50,000 units during the period. The manufacturing costs and selling and administrative expenses were as follows: Total Number Cost of units Beginning inventory: Direct materials 67,000 10000 Direct labor 155,000 10000 Variable factory overhead 18,000 10000 Fixed factory overhead 20,000 10000 Total 260,000 Unit Cost $ 6.70 15.50 1.80 2.00 26.00 $ Current period costs: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total 350,000 810,000 90,000 100,000 1,350,000 50000 50000 50000 50000 $ 7.00 16.20 1.80 2.00 $ 27.00 Selling and administration expenses: Variable Fixed $ 65,000 45,000 110,000 Required: 1 Prepare an income statement based on the absorption costing concept. 2 Prepare an income statement based on the variable costing concept. 3 Give the reason for the difference in the amount of operting income in parts [1] and [2]