Refer to the Sportade example in Appendix 3A and the data and your answer to S3-16. 

Data in S3-16.

Consider the Sportade example in Appendix 3A . Suppose that during April, the company produces 10,000 cases of powdered drink mix and sells 11,000 cases. Sales price, variable cost per case, and total fixed expenses remain the same as in March. Prepare the April income statement using variable costing.

1. Prepare the April income statement under absorption costing. 

2. Is absorption costing income higher or lower than variable costing income? Explain. 

3. Reconcile the difference between the absorption costing income statement and the variable costing income statement.

Check sum: Gross profit is $154,000