Part 7 Absorption versus Variable Costing (30 points) Beau Company presents the following aggregate information: Total sales $500,000 Variable Cost of Sales 260,000 Fixed Costs included in Cost of Sales 50,000 Variable Selling and Administrative Costs 30,000 Fixed Selling and Administrative Costs 26,000 Required 1. In good form, prepare Income statements under both the Absorption Costing and Variable Costing approach 2. Answer about the impact of releasing fixed manufacturing costs from inventory shown below. Beau Company Income Statement Absorption Costing Approach SALES $500,000 Beau Company Income Statement Variable Costing Approach SALES $500,000 Requirement #2. A company uses the Absorption Costing method. Finished Goods Inventory decreases during the period. $2.000 of fixed manufacturing overhead was included in the inventory. This will result in than Income under Variable Costing Income under Absorption costing to be B The SAME CGREATER Iput letter in above blank space) A. SMALLER