Variable and Absorption Costing Summarized data for 2016 the first year of operations) for Trenton Products, Inc., are as follows: Sales (200,000 unit Praduction costs (210,000 uni Direct material 120.000.000 5,250,000 4,200,000 Direct labor Manufacturing overhead 3,150,000 2625,000 Operating expens Vinable 1,400,000 1,600,000 a. Prepare an income statement based on full absorption costing Only use a negative sign with your answer for net income poss), 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. Absorption Casting come Statement Cent of Goods S Hering inermory Direct materials Direct labor Less: Ending inventory Cost of Goods Sold Net Income (Loss 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. Sales Variable Cesting Income Statement Vable cost of Goods St Direct materials Direct labor Less Ending inventory st of goods sold Variable cost o Operating expenses TC Net Income c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $70 per unt 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