Required: 1. Prepare an income statement based on the absorption costing concept . 2. Prepare an income statement based on the variable costing concept * 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2) * Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries Be sure to complete the statement heading. A colon (J) will automatically appear if required Enter Inventory. August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign Labels and Amount Descriptions Labels August 31 Cost of goods sold Fixed costs For the Month Ended August 31 Variable cost of goods sold Amount Descriptions Contribution margin Contribution margin ratio Cost of goods manufactured Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Income from operations Inventory, August 31 Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total cost of goods sold Total fixed costs Total variable cost of goods sold Variable cost of goods manufactured Variable selling and administrative expenses 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing