Rand Technologies is concerned about its profits for 2016. Manufacturing costs were the same in 2015 and 2016: the variable manufacturing cost per unit was $35 and fixed manufacturing costs were $3,500,000. In 2015, the company produced 100,000 units and sold 80,000 units at a price of $87.50 per unit. There was no beginning inventory in 2015. In 2016, the company produced 70,000 units and sold 90,000 units at a price of $87.50. Selling and administrative expenses were all fixed at $350,000 each year. Required: a. Prepare income statements for each year using absorption costing and variable costing. b. Explain why the income was different each year using the two methods. Show computations