Prepare income statements under variable and absorption costing for the year ended December 31, 2012. What is Zwatch's operating income as percentage of revenues under each costing method? Explain the difference in operating income between the two methods. Which costing method would you recommend to the CFO? Why? Absorption and variable costing (CMA) Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2012, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Osawa sold 120,000 units of product at $40 per unit. Osawa's 2012 operating income using absorption costing is (a) $440,000, (b) $200,000, (c) $600,000, (d) $840,000, or (e) none of these. Show supporting calculations. Osawa's 2012 operating income using variable costing is (a) $800,000, (b) $440,000, (c) $200,000, (d) $600,000, or (e) none of these. Show supporting calculations