On July $31,2016,$ the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:

Rhys Company

Income Statement $-$ Absorption Costing

For the Month Ended July $31,2016$

$\backslash$table$[[1,$Sales units$),,$$$4,440,000\mathrm{.}00$

Required:

A$.$ Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $$132,000$ and the variable selling and administrative expenses were $$115,200.$ Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" and colons will automatically appear if it is required. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

B$.$ Reconcile the absorption costing income from operations of $$1,656,000$ with the variable costing income from operations determined in $($A$).$