Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Trenton Products, Inc., are as follows: Sales (200,000 units) Production costs (210,000 units) $24,000,000 Direct material 6,300,000 Direct labor 5,040,000 Manufacturing overhead: Variable 3,780,000 Fixed 3,150,000 Operating expenses: Variable 1,680,000 Fixed 1,920,000 a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Sales Absorption Costing Income Statement Cost of Goods Sold: Beginning Inventory Direct materials Direct labor Less: Ending Inventory Cost of Goods Sold Net Income (Loss) O b. Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Variable Costing Income Statement Sales Variable cost of Goods Sold: Beginning Inventory Direct materials Direct labor Less: Ending Inventory Variable cost of goods sold Fixed costs: O $ Operating expenses Total Fixed Cost Net Income (Loss) $ c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $84 per unit. Which income statement presents the most relevant data? Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. $ d. If the ending inventory is destroyed by fire, which costing approach would you use as a basis for filing an insurance claim for the fire loss? Why? Select the most appropriate statement. CAbsorption costing approach because the cost should include a reasonable portion of fixed manufacturing costs. Variable costing approach because the cost should include a reasonable portion of fixed manufacturing costs