Calculate absorption costing income and variable costing income.

Calculate absorption costing income and variable costing income. Construct and prepare an income statement for a calendar year.IntroductionNote: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.Businesses must track the costs of doing business and profits to plan for the future.InstructionsNote: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.Use the Variable Costing Conversion Template [XLSX]to complete this assessment.Competencies MeasuredBy successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:Competency 2: Apply sound budgeting principles.Calculate absorption costing income and variable costing income.Competency 4: Analyze financial statements.Construct an income statement for each yearusing variable costing.Prepare an income statement for a calendar yearusing variable costing.Competency 5:Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.Communicate quantitative information accurately and effectively.