Scenario Table 1 Jordan Income Statement Under Absorption Costing 2016 ($) 2017 ($) Sales ($45 per unit) 828,000 1,620,000 Cost of goods sold ($31 per unit) 620,000 1,240,000 Gross margin 208,000 380,000 Selling and administrative expenses 261,000 306,000 Net income/loss (53,000) 74,000 Scenario Table 2 Units Produced and Sold 2016 2017 Units produced 30,000 30,000 Units sold 20,000 40,000 During 2016 and 2017, the variable cost per unit stayed the same. During 2016 and 2017, the total fixed costs stayed the same. Scenario Table 3 Per Unit Product Cost Direct materials $5 Direct labor $9 Variable overhead $7 Fixed overhead ($300,000 / 30,000 units) $10 Total product cost per unit $31 Scenario Table 4 Sales and Administrative Expense 2016 ($) 2017 ($) Variable selling and administrative ($2.25 per unit) 45,000 90,000 Fixed selling and administrative 216,000 216,000 Total selling and administrative 261,000 306,000Prepare an income statement for each year using variable costing. Jordan Variable Costing Income Statements 2016 2017 Sales ($45 per unit sold) Less variable expenses: Variable production costs ($21 per unit sold*) Variable selling and administrative costs ($2.25 per unit sold) 45,000 90,000 Total variable costs Contribution margin Less fixed expenses: Factory overhead Fixed selling and administrative costs 216,000 216,000 Total fixed expenses Net income "Note: The variable production cost is computed by adding the per-unit production costs for direct materials, direct labor, and variable overhead ($5 + $9 + $7 = $21).Reconcile the variable costing income to the absorption costing income for these two years. Reconciliation of Variable Costing Income to Absorption Costing Income 2016 ($) 2017 ($) Variable costing income Fixed overhead in ending inventory Fixed overhead in beginning inventory Absorption costing income