(Refer to Problem 17.52) Assume that Jungle Gym uses throughput costing.

Data from Prob. 17.52:

Jungle Gyms Unlimited makes backyard playsets. The playsets are sold for $450 each. Variable production costs are about $150 per playset. Fixed production costs are $5,000 per month. The fixed costs for administrative and selling expenses are $2,000 per month plus $25 per playset sold. At the beginning of April, Jungle Gym’s had 10 playsets in inventory with a total production cost of $2,750. In April, it produced 50 playsets and sold 45. In May, it produced 50 playsets and sold 60.

Required 

A. What is the operating income for April and May if Jungle Gym uses throughput costing? Assume direct materials are $80 per playset.

B. Reconcile the difference between the variable and throughput costing incomes in April and May. (The variable costing income is calculated in Problem 17.52).

C. Explain why Jungle Gym might prefer the throughput costing income statement.