Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Trenton Products, Inc., are as follows: Sales (200,000 units) $15,000,000 Production costs (210,000 units) Direct material 4,200,000 Direct labor 3,360,000 Manufacturing overhead: Variable 2.520,000 Fixed 2,100,000 Operating expenses: Variable 1,120,000 Fixed 1,280,000 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. Absorption Costing Income Statement Sales 0 Cost of Goods Sold: Beginning Inventory 0 Direct materials 0 Direct labor 5 0 0 0 Less: Ending Inventory Cost of Goods Sold 0 0 0 0 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. Variable Costing Income Statement Sales Variable cost of Goods Sold: Beginning inventory Direct materials 0 Direct labor 0 $ 0 0 Total Fixed Cost Net Income (Loss) $ 0 C. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $56 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. $ 0 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 OAbsorption 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