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Income Statements under Absorption and Variable Costing August 1 and operated at 100 % of capacity during the first month. The following data summarize the results for August Shawnee Motors Inc. assembles and sells MP3 players. The company began operations Sales (12,000 units) $1,080,000 Production costs (15,000 units): Direct materials $499,500 Direct labor 240,000 Variable factory overhead 120,000 Fixed factory overhead 939,000 9,500 Selling and administrative expenses: Variable selling and administrative expenses $145,500 Fixed selling and administrative expenses 56,300 201,800 If required, round interim per-unit calculations to the nearest cent. income statement according to the absorption costing concept. a. Prepare Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations b. Prepare an income statement according to the variable costing concept Shawnee Motors Inc Variable Costing Income Statement For the Month Ended August 31 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead Fixed selling and administrative expenses Total fixed costs Income from operations