Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (11,500 units) $1,725,000 Production costs (15,000 units): Direct materials $832,500 Direct labor 399,000 Variable factory overhead 199,500 Fixed factory overhead 133,500 1,564,500 Selling and administrative expenses: Variable selling and administrative expenses $242,500 Fixed selling and administrative expenses 93,900 336,400 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales 1,725,000 of goods sold 1,199,450 Gross profit 525,550 Selling and administrative expenses 336,400 Income from operations 189,150 b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Sales 1,725,000 Variable cost of goods sold 1,097,100 Manufacturing margin Variable selling and administrative expenses 242,500 Contribution margin 385.400 Fixed costs: Fixed factory overhead 133,500 Fixed selling and administrative expenses 93,900 Total fixed costs 227,400 Income from operations 158,000