Leoparod Company Developed the Following Unit Information for January 2014

Leoparod Company developed the following unit information for January 2014 its first month of operations: $\begin{array}{lcc}&\text { Per Unit}&\text { Total Cost }\\ \text { Sales price } &\$20\\ \text { Variable costs } &\\ \text { Direct materials} &5\\ \text { Direct labor } &3\\ \text { Variable manufacturing overhead } &4\\ \text { Selling and administrative expenses } &2\\ \text { Fixed selling and administrative expenses } &&\$31,000\\ \text { Fixed manufacturing overhead } &&46,000\\\end{array}$
During January 16000 units were produced and 12000 units were sold.
Instructions
(a) Prepare an income statement under the variable costing approach using the CVP format.
(b) What would be the net income (loss) if the absorption cost approach had been used? Explain any income difference between absorption and variable costing.