9-18 Variable and absorption costing, explaining operating-income differences. Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January February, and March 2014 are as follows: January February March 0 1,400 1,300 100 1,375 1,375 100 1,430 1,455 Unit data Beginning inventory Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs 950 $ $ $ $ 950 725 $ $ 950 725 725 $190,000 $120,000 $490,000 $120,000 $490,000 $120,000 The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 units. There are no price, efficiency, or spending variances. Any pro- duction-volume variance is written off to cost of goods sold in the month in which it occurs. 1. Prepare income statements for Crystal Clear in January, February, and March 2014 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing