Varible - 85,000

Fixed - 45,000

Fixed Manufacturing Overhead -100,000

Units Produced vs Units Sold 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using absorption costing