Valuable costing income statement On July 31, 2016 the end of the month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (96,000 units).. $4,440,000 Cost of goods sold: Cost of goods manufactured $3,120,000 Less ending inventory (24,000 units).. 624,000 Cost of goods sold. $2,496,000 Gross profit .. $1,944,000 Selling and administrative expenses 288,000 Income from operations $1,656,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing cost were $132,000 and the variable selling and administrative expenses were $115,200. b. B. Reconcile the absorption costing income from operations of $1, 656,000 with the variable costing income from operations determined in (a).