Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% summarize the results for August: $9,500,000.00 $4,650,000.00 1,860,000.00 Sales (38,000 units) 2 Production costs (46,500 units): 3 Direct materials 4 Direct labor s Variable factory overhead 6 Fixed factory overhead 7 Selling and administrative expenses: * Variable selling and administrative expenses Fixed selling and administrative expenses 1,162,500.00 697,500.00 8,370,000.00 $1,250,000.00 235,000.00 1,485,000.00 Required: a. Prepare an income statement according to the absorption costing concept b. Prepare an income statement according to the variable costing concept." c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? *Refer to the list 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 () will automatically appear if it is required Enter all amounts as positive numbers. Labels Fixed costs For the Month Ended August 31 August 31 Amount Descriptions Contribution margin Contribution margin ratio Cost of goods sold Fixed factory overhead costs Fixed selling and administrative expenses Gross profit Income from operations Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total fixed costs Variable cost of goods sold Variable selling and administrative expenses a. Prepare an income statement according to the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact w entries. Be sure to complete the statement heading. A colon () will automatically appear if it is required. Enter all amounts as positive numbers. Shawnee Motors Inc. Absorption Costing Income Statement (Label) 1 2. 3 4 5 Shawnee Motors Inc. Variable Costing Income Statement (Label) 1 2 3 5 6 (Label) 7 10