XYZ Company commenced operations on January 1 of the current year. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 1.Prepare an income statement using absorption costing. 2.Prepare an income statement using variable costing. 3.What cost is the reason for the difference