Miller Heating is a small manufacturer of auxiliary heaters. The units sell for $300 each. In 2020, the company produced 1,000 units and sold 800 units. There was no beginning inventory. Below are variable and full costing income statements for 2020. 

Required 

Reconcile the difference in profit between the two income statements.

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Income Statement Prepared Using Variable Costing Miller Heating Company Income Statement For the Year Ending December 31, 2020 Sales $240,000 Less variable costs: Variable cost of goods sold $32,000 Variable selling expense 16,000 48,000 Contribution margin 192,000 Less fixed costs: Fixed manufacturing expense 50,000 Fixed selling expense 20,000 Fixed administrative expense 30,000 100,000 Net income $ 92,000 Income Statement Prepared Using Full Costing Miller Heating Company Income Statement For the Year Ending December 31, 2020 Sales $240,000 Less cost of goods sold 72,000 Gross margin 168,000 Less selling and administrative expenses: Selling expense $36,000 Administrative expense 30,000 66,000 Net income $102,000