Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below:Units in beginning inventory 2000Units produced 9000Units sold 10000Sales $100000Less cost of goods sold:Beginning inventory 12000Add cost of goods manufactured 54000Goods available for sale 66000Less ending inventory 6000Cost of goods sold 60000Gross margin 40000Less selling and admin. expenses 28000Net operating income$ 12000Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold.Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.