Question B Gee uses variable costing for internal analysis and absorption costing for income statement to be used externally by creditors, banks and government agencies. The company manufactures a product that is sold for $240. The variable and fixed cost data are shown below: Direct materials $90.00 Direct labor $57.00 Factory over head: Variable cost $18.00 Fixed cost ($45,000 / 9000 units) $15.00 Marketing, general and administrative: Variable cost (per unit sold) $12.00 Fixed cost (per month) $84,000 During June 27,000 units were produced and 22,500 units were sold. The opening inventory was 6,000 units. Required: 1. Prepare an income statement using variable costing method. 2. Prepare an income statement using absorption costing method. 3. Explain the difference in net operating income (if any) under two approaches