Do not give answer in image Fresno, Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (211,000 units) during the first month,creating an ending inventory of 16,000 units. During February, the company produced 195,000 units during the month but sold 211,000 units at $540 per unit. The February manufacturing costsand selling and administrative expenses were as follows:Manufacturing costs in February 1 beginning inventory:VariableFixedTotalManufacturing costs in February:VariableFixedTotalSelling and administrative expenses in FebruaryVariableFixedNumber ofUnits16,00016,000195.000195,000211,000211,000UnitCost$270.00 $4,320,00025.00$295.00TotalCost$19.201.00400,000$270.00$52,650,0005,616,00028.80$298.80 $58,266,000$4,720,00054.051.200211.00054.262.200Total$20.20This information has been collected in the Microsoft Excel Online file. Open the spreadsheet., performs the required analysis, and input your answers in the questions below. a. Prepare an income statement according to the absorption costing concept for the month ending February 28.Fresno Industries Inc.Absorption Costing Income StatementFor the Month Ended February 28SalesCost of goods sold:Beginning inventoryCost of goods manufacturedTotal cost of goods soldGross profit✔Selling and administrative expensesOperating income✓b. Prepare an income statement according to the variable costing concept for the month ending February 28.Fresno Industries Inc.Variable Costing Income StatementFor the Month Ended February 28SalesVariable cost of goods sold - ✔Manufacturing margin✔Variable selling and administrative expensesContribution marginFixed costs:✔Variable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginTotal fixed costsOperating income✓Fixed manufacturing costsFixed selling and administrative expenses✔✓✓✔✓$✔

The income statement provides details on the financial outcomes of a company's operations throughout…

Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (211,000 units) during the first month, creating an ending inventory of 16,000 units. During February, the company produced 195,000 units during the month but sold 211,000 units at $540 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Manufacturing costs in February 1 beginning inventory: Variable Fixed Total Manufacturing costs in February: Variable Fixed Total Selling and administrative expenses in February Variable Fixed Number of Units 16,000 16,000 195,000 195,000 211,000 211,000 Unit Cost $270.00 25.00 $295.00 Total Cost $4,320,000 400,000 $4,720,000 $270.00 $52,650,000 5,616,000 28.80 $298.80 $58,266,000 $4,051.2007 211.000 $4,262,200 $19.20 1.00 Total $20.20 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.