a. 2. Prepare an estimated income statement, comparing operating results if 28,000 and 31,200 units are manufactured in the variable costing format. If an am does not require an entry leave it blank. Lemke Inc. Variable Costing Income Statement For the Month Ending January 31 Line Item Description Variable cost of goods sold: Fixed costs: Total fixed costs 28,000 Units 31,200 Units Manufactured Manufactured a. 1. Prepare an estimated income statement, comparing operating results if 28,000 and 31,200 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. Lemke Inc. Absorption Costing Income Statement For the Month Ending January 31 28,000 Units 31,200 Units Manufactured Manufactured Line Item Description $ Cost of goods sold: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending January 31, Lemke Inc. estimated the following operating results: Sales (28,000 $98) Manufacturing costs (28,000 units): $2,744,000 Direct materials 1,660,400 Direct labor 392,000 Variable factory overhead 184,800 Fixed factory overhead 218,400 Fixed selling and administrative expenses 59,400 Variable selling and administrative expenses 71,900 The company is evaluating a proposal to manufacture 31,200 units instead of 28,000 units, thus creating an ending inventory of 3,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 28,000 and 31,200 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank.