Stuart Company incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing overhead Variable Fixed ($19.60/unit for 1,200 units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 38.70/unit $ 26.90/unit $ 10.20/unit $ 23,520 $ 5,320 $ 14,400 The company produced 1,200 units and sold 700 of them at $181.70 per unit. Assume that the production manager is paid a 1 perce bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. STUART COMPANY Income Statement (Absorption Costing) Cost of goods Sold $ 69 0 0 0