The following absorption costing income statement and additional data are available from the accounting records of Bernon Co

The following absorption costing income statement and additional data are available from the accounting records of Bernon Co. for the month ended May 31, 2007. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories.

Sales (17,000 @ $60)                          $1,020,000

Cost of goods sold                                   612,000

Gross profit $ 408,000

Selling and administrative expenses          66,000

Income from operations                      $ 342,000

Additional Information:

Cost                                         Total Cost        Number of Units          Unit Cost

Manufacturing costs:

  Variable                                 $442,000         17,000                         $26

  Fixed                                       170,000         17,000                           10

  Total                                      $612,000                                             $36

Selling and administrative expenses:

   Variable ($2 per unit sold)                            $34,000

  Fixed                                                               32,000

  Total                                                              $66,000

Required

Prepare a new income statement for the year using variable costing. Comment on the differences, if any, between the absorption costing and the variable costing income statements.