Variable and Absorption Costing Summarized data for the first year of operations for Trenton Products, Inc., are as follows: Sales $(200,000$ units$)$ $$16,000,000$ Production costs $(210,000$ units$)$ Direct material $4,200,000$ Direct labor $3,360,000$ Manufacturing overhead: Variable $2,520,000$ Fixed $2,100,000$ Operating expenses: Variable $1,120,000$ Fixed $1,280,000$ a$.$ Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income $($loss$),$ if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales Cost of Goods Sold: Beginning Inventory Direct materials Direct labor Less: Ending Inventory Cost of Goods Sold Net Income $($Loss$)$ b$.$ Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income $($loss$),$ if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Variable Costing Income Statement Sales Variable cost of Goods Sold: Beginning Inventory Direct materials Direct labor Less: Ending Inventory Variable cost of goods sold Fixed costs: Operating expenses Total Fixed Cost Net Income $($Loss$)$ c$.$ Assume that you must decide quickly whether to accept a special one$-$time order for $1,000$ units for $$56$ per unit. Which income statement presents the most relevant data? Answer 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. $Answer d$.$ 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. Absorption 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.