Use the information below to answer the following question(s) by either typing the answer or inserting a file. Hart Company sells its products for $100 each. The current production level is 25,000 units, although only 24,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials $20.00 Direct manufacturing labour $20.00 Variable manufacturing OH costs $10.00 Total fixed manufacturing OH costs $250,000 Marketing expenses: $20.00 per unit, plus fixed marketing costs of $120,000 per year Hart Company completed a Contribution Margin Income Statement as follows: Hart Co. Contribution Margin Income Statement for Period Ended XXX: $2,400,000 1,200,000 480,000 1,680,000 720,000 Sales (24,000 $100) Variable costs: Cost of goods sold (24,000 $50*) Marketing (24,000 $20) Contribution margin Fixed costs: Manufacturing Marketing Operating income $20.00 + $20.00+ $10.00 = $50 $250,000 120,000 370,000 $350,000 Required: 1) Prepare an income statement in proper form using absorption costing in the gross margin format. (6 marks) 2) Explain the difference between the variable and absorption income statements by using a formula to reconcile the difference. (4 marks)