Module M2c-CP4 Homework Problem Absorption vs. Variable Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income Hieb Ceuntry. Ine. produces and iella mary recieational prodocti. The ceargaety has jaat ogened a new plant to produce a foldine camp cot that will be marketrd throughoet the United 5tates. The follewing cost and reverue data relate to Mag', thr firat menth of the plant a operation: Manseement is anwous to aites the profiratility of the new camp cot derine the month of Maxy- Required: I Acsume that the company ases absorptian cosite. a. Determine the usit product cent b. Prepare an inceese statement for Mar 2. Aviume that the compang uset variable coutine a. Determane the unit prosuct cost b. Piepare a contribstion forritar incone statement for Mry 3. Explain the reason for any difference in the endirg inventory balances ander the two counine methods and the ingact of this difference on reported net egeratine intene. Determine the unit product cost. Assume that the company uses absorption costing. Prepare an income statement for May. Assume that the company uses absorption costing. Determine the unit product cost. Assume that the company uses variable costing. Prepare a contribution format income statement for May. Assume that the company uses variable costing. Requirement 3 : Explain the reason for any arference in ending imventory balances under the two costing methods and the imgact of thas afterence on reported net ncome