The vice-president, sales of Waterway Corporation has received the following income statement for November, which was prepared on a variable-costing basis. The firm has just adopted variable costing for its internal reporting. The controller attached the following notes with the statements The controller attached the following notes with the statements: 1. The unit sales price for November averaged $34. 2. The unit manufacturing costs for the month were as follows: 3. The unit rate for fixed manufacturing costs is a predetermined rate based on a monthly production of 150,000 units. 4. The variable costs per unit have been stable all year. 5. Production for November was 43,850 units in excess of sales. 6. The inventory at November 30 was 90,400 units. The vice-president, sales is not comtortable with the variable-costing system and wonders what the net income woud have becen under the previcus absorption-cosing Syatem. 1. Present the November income statement on an absorption-costing basis. 2. Reconcile and explain the ditference between the variable-costing and absorption-costing net income figures