P 6-7A Gardner Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2013 the first year of operations Gardner produced 4000 tons of plastic and sold 2500 tons. In 2014 the production and sales results were exactly reversed. In each year the selling price per ton was $2000 variable manufacturing costs were 15% of the sales price of units produced variable selling expenses were 10% of the selling price of units sold fixed manufacturing costs were $2000000 and fixed administrative expenses were $500000. Instructions (a) Prepare income statements for each year using variable costing. (Use the format from Illustration 6A-5.) (b) Prepare income statements for each year using absorption costing. (Use the format from Illustration 6A-4.) (c) Reconcile the differences each year in net income under the two costing approaches. (d) Comment on the effects of production and sales on net income under the two costing approaches.