g) Prepare the 2018 income statement based on absorption costing:

h) Prepare the 2018 income statement based on variable costing:

i) Does the 2018 income differ between the two methods?

j) If yes, which 2018 income is higher? By what amount? Explain why?

k) Under what condition your answer to part j would reverse?

(25 points) variable costing vs absorption costing. Kineret Inc. provided the following summarized data for 2018 and 2019. Kineret manufactures a single product and started operation on January 1, 2018. (In all parts of this question show your calculations.) 2019 2018 Units Produced 20,000 22,400 Units Sold 22,400 20,000 Total fixed manufacturing overhead Variable manufacturing overhead per unit produced Total fixed operating expense Variable operating expense per unit sold Direct materials per unit produced Direct labor per unit produced Selling price per unit 963,200 21 540,000 8 10 12 180