Variable and Absorption Costing The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $26,160 Cost of goods sold Sellino, administrative, and other expenses Total expenses $(22,240) (2,350) $(24,590) Operating income $1,570 Assume that $5,200 million of cost of goods sold and $1,300 million of selling, administrative, and other expenses were fixed costs. Triventories at the beginning and end of the year were as follows: Beginning inventory $3,110 Ending Inventory 33,630 Also, assume that 40% of the beginning and ending inventories were fixed costs, a. Prepare an income statement according to the variable costing concept for Ansara Company Round numbers to nearest million Ansara Company Variable Costing Income Statement (assumed) For the Year Ended December 31 Variable cost of goods sold: For the Year Ended December 31 Variable cost of goods sold: Beginning inventory Fixed costs: 8 b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. The Income from operations under the variable costing concept be the same as the income from operations under the sbsorption costing concept when the inventories either increase or decrease during the year. In this case, Ansara's inventory