PROBLEM :Absorption and Variable Gosling [17 points ] Caliber Corp manufactures and sells GPS watches for kids . Caliber sells each watch for $75.The normal level of production is 2,000 units .Actual information for Ianuary is given below : Ianuary Units Beginning Inventory 0 Production 2,000 Sales 1,200 Variable Costs Manufacturing per unit $35 Selling per unit $5 Fixed Costs Manufacturing total $5,000 Selling total $1,000 The Absorption Costing Income Statement is calculated here on the bottom left. Use this information and the information above to calculate the Variable Costing Income Statement in the box below on the right . Absorption Costing . . Variable Costmg Income Statement Caliber Corp. Year 1 January Revenue $ 90,000 COGS 45,000 GM 45,000 Selling Expenses 7,000 Net Income $ 38,000 How do you explain the difference in the two methods ? You can explain in words or by calculation