If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under , all income statement will have a higher operating income