Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4 Solomon Company incurred manufacturing overhead cost for the year as follows. The company produced 1,000 units and sold 500 of them at $182.00 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Propare an income atotement using absorption costing. Determine the manager's bonus using each approach. Which approach would you fecommend for intemal reporting? Complete this question by entering your answers in the tabs below. Prepare an income statement using absorption costing. Complete this question by entering your answers in the tabs below. Prepare an income statement using variable costing. The company produced 1,000 units and sold 500 of them at $182.00 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Determine the manaper's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)