Hanks Company produces a single product. Operating data for the company and its absorption costing income statement for the last year is presented below.
Units in beginning inventory................................... 0Units produced.................................................. 9,000Units sold.......................................................... 8,000Sales............................................................. $ 80,000Less cost of goods sold: Beginning inventory................................................ 0Add cost of goods manufactured................... 54,000Goods available for sale................................ 54,000Less ending inventory..................................... 6,000Cost of goods sold......................................... 48,000Gross margin................................................. 32,000Less selling and admin Expenses.................. 28,000
Net operating income.................................... $ 4,000
 Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18,000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold.
Required:  Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.