Instructions Crazy Mountain Sports Inc assembles and sells snowmobile engines. The company began operations on March...

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Instructions Crazy Mountain Sports Inc assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month The following data summarize the results for March Sales (38,000 units) Production costs (46,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $9,500,000.00 $4,650,000.00 1,860,000.00 1,162,500.00 697,500.00 8,370,000.00 Selling and administrative expenses Variable selling and administrative expenses $1,250,000.00 Fixed selling and administrative expenses 235,000.00 1,485,000.00 Required: a. Prepare an income statement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept c. What is the reason for the difference in the amount of Operating income reported in (a) and (b)? Labels and Amount Descriptions Labels Fixed costs For the Month Ended March 31 March 31 Amount Descriptions Contribution margin Contribution margin ratio Cost of goods sold Fixed factory overhead costs Fixed selling and administrative expenses Gross profit Operating income Loss from operations Manufacturing margin Planned contribution margin Sales Fixed selling and administrative expenses Gross profit Operating income Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total fixed costs Variable cost of goods sold Variable selling and administrative expenses Absorption Costing Income Statement a. Prepare an income statement according to the absorption costing concept. Income Statement Instructions 1 2 3 4 5 Crazy Mountain Sports Inc. Absorption Costing Income Statement (Label) Variable Costing Income Statement Crazy Mountain Sports Inc. Variable Costing Income Statement (Label) 1 2 3 4 S 6 (Label) 7 8 9 10 10 Instructions Crazy Mountain Sports Inc assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month The following data summarize the results for March Sales (38,000 units) Production costs (46,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $9,500,000.00 $4,650,000.00 1,860,000.00 1,162,500.00 697,500.00 8,370,000.00 Selling and administrative expenses Variable selling and administrative expenses $1,250,000.00 Fixed selling and administrative expenses 235,000.00 1,485,000.00 Required: a. Prepare an income statement according to the absorption costing concept. b. Prepare an income statement according to the variable costing concept c. What is the reason for the difference in the amount of Operating income reported in (a) and (b)? Labels and Amount Descriptions Labels Fixed costs For the Month Ended March 31 March 31 Amount Descriptions Contribution margin Contribution margin ratio Cost of goods sold Fixed factory overhead costs Fixed selling and administrative expenses Gross profit Operating income Loss from operations Manufacturing margin Planned contribution margin Sales Fixed selling and administrative expenses Gross profit Operating income Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total fixed costs Variable cost of goods sold Variable selling and administrative expenses Absorption Costing Income Statement a. Prepare an income statement according to the absorption costing concept. Income Statement Instructions 1 2 3 4 5 Crazy Mountain Sports Inc. Absorption Costing Income Statement (Label) Variable Costing Income Statement Crazy Mountain Sports Inc. Variable Costing Income Statement (Label) 1 2 3 4 S 6 (Label) 7 8 9 10 10