Snow Skidders Inc. Income Statement (Variable Costing) For the month ended December 31, 2021 291,840 128,000 51,712 Sales (5,120 units) Variable expenses: Variable cost of goods sold Variable selling & administrative expenses Contribution Margin Fixed expenses: Fixed overhead Fixed selling & administrative expenses Operating loss 179,712 112,128 104,805 18,944 123,749 (11,621) 6,165 5,120 Additional information: Units produced Units sold Variable costs per unit: Direct materials Direct labour Variable overhead Variable selling & administrative expenses $ 13.60 $ 9.00 $ 2.40 $ 10.10 Chase is discouraged at the operating loss since he worked really hard during their prime busy winter season. His friend, Rocky Rich, suggests he should have used absorption costing instead of variable costing. Required: In January 2022, the company produced 6,165 units and sold 7,210 units. The selling price has remained unchanged. A. Prepare and income statements using variable costing for January 2022, in good form. B. Prepare and income statements using absorption costing for January 2022, in good form. C. Reconcile the variable costing and absorption costing operating results. D. In your own words, clearly but concisely explain the root cause of the differences in Jan 2022 operating results under the two methods