Question 1 Not complete Marked out of 30.00 Flag question Variable and Absorption Costing-Service Company Rocky's Automotive specializes in performing automobile safety checks. After the company's first year of operations, its accountant prepared the following summarized data report for the safety checks for 2019: Sales (7,000 safetychecks) $700,000 Production costs (7,010 safety checks) Direct labor 490,700 Shop overhead Variable 112,160 Fixed 70,100 Operating expenses Variable 21,030 Fixed 16,000 a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales Cost of Goods Sold: Beginning Inventory Direct labor $ Less: Ending Inventory Cost of Goods Sold Net Income (Loss) $ b. Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, w Variable Costing Income Statement Sales Variable cost of Goods Sold: Beginning Inventory $ Direct labor Less: Ending Inventory Variable cost of goods sold Fixed costs: Operating expenses Total Fixed Cost Net Income (Loss) C. Assume that you must decide quickly whether to accept a special one-time order for 20 safety checks on local police cars for $85 per safety check. Which income statement presents the most relevant data? Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. $ Check