The following absorption costing income statement and additional data are available from the accounting records of XYZ Co. for the month ended December 31, 2017. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories. XYZ Co. Absorption Costing Income Statement for the Month Ended December 31, 2017 Sales (17,000 @ $60) $1,020,000 Cost of goods sold 612,000 Gross profit $ 408,000 Selling and administrative expenses 66,000 Income from operations $ 342,000 Additional Information: Cost Total Cost Number of Units Unit Cost Manufacturing costs: Variable $442,000 17,000 $26 Fixed 170,000 17,000 10 Total $612,000 $36 Selling and administrative expenses: Variable ($2 per unit sold) $34,000 Fixed 32,000 Total $66,000 Required: 1. Prepare a new income statement for the year using variable costing. 2. Did the operating income change under the variable costing method? Please explain.