Variable and Absorption Costing Summarized data for 2019 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (70,000 units) Production costs (80,000 units) $2,800,000 Direct material Direct labor 880,000 720,000 Manufacturing overhead: Variable Fixed 544,000 320,000 Operating expenses: Variable 175,000 240,000 60,000 18,000 28,800 30,000 Fixed Depreciation on equipment Real estate taxes Personal property taxes (inventory & equipment) Personnel department expenses 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 esents a net loss. Otherwise, do not use negative signs with answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement $ 2,800,000 Sales Cost of Goods Sold: |$ 0 Beginning Inventory 0 Direct materials 0 Direct labor 0 0 Less: Ending Inventory Cost of Goods Sold 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 $ 0 Sales Variable cost of Goods Sold: |$ 0 Beginning Inventory 0 Direct materials 0 Direct labor 0 0 Less: Ending Inventory 0 Variable cost of goods sold 0 0 Fixed costs: 0 0 Operating expenses Total Fixed Cost $ 0 Net Income (Loss) o c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $25 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. Please answer all parts of the