Requirement 1. Prepare two income statements for the year, one using absorption costing and one using variable costing. Begin by preparing the income statement for the year using absorption costing. Quality Industries Income Statement (Absorption Costing) For the Year Ended Sales revenue $ 470,000 Less: Cost of goods sold Gross profit Less: Operating expenses Operating income 66,000 H 1 Data Table Selling price per unit Direct material per unit Direct labor per unit Total annual manufacturing overhead $ 47.00 $ 23.00 $ 4.00 $ 130,000 Fixed portion of annual manufacturing overhead . $ 117,000 Variable operating expenses per unit sold ...... $ 2.00 Fixed operating expenses per year in total ... $ 46,000 Units manufactured 13,000 Units sold 10,000 Print Done