The following information is available for quarters 1 to 4 for Solo Limited: Unit selling price $550 Unit variable cost $300 Quarter fixed manufacturing costs $60,000 The company produces only one product. Normal quarter activity is 500 units and production and sales for the four quarters are as follows. Units sold Units produced Quarter 1 500 500 Required: Quarter 2 400 500 Quarter 3 550 450 Quarter 4 450 500 There were no opening stocks at the start of quarter 1, and the actual fixed manufacturing costs incurred was $60,000 per quarter. It is also noted that the equation of selling and administrative expenses is $8,300 + 4% of sales per quarter. Allocation based for annual fixed manufacturing costs is on 2,000 units. a. Construct an income statement under absorption costing method for quarters 1 to 4. Construct an income statement under marginal costing method for quarters 1 to 4. b. c. Comment on the results of part a & b for the quarter 1, 2 and 3. You are required to reconcile the difference.