Vacuum Magic Company manufacturers a professional-grade vacuum cleaner and began operations in 2017. For 2017, Vacuum Magic budgeted to produce and sell 27,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2017 are given as follows: E: (Click the icon to view the actual data for 2017.) Read the Data Table Requiren Variable costing. Complete For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) 26,000 16,500 Requirements Units produced Units sold Selling price Variable costs: $ 428 Manufacturing cost per unit produced: Direct materials $ 25 21 1. Prepare a 2017 income statement for Vacuum Magic Company using variable costing 2. Prepare a 2017 income statement for Vacuum Magic Company using absorption costing 3. Explain the differences in operating incomes obtained in requirements 1 and 2. 4. Vacuum Magic's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Vacuum Magic management make to improve such a plan? Explain briefly. Direct manufacturing labor Manufacturing overhead Marketing cost per unit sold Fixed costs: 66 50 Manufacturing costs $ 1,782,000 Administrative costs 910,500 Print Done Marketing costs 1,421,600 Choose fr