The Klein and Varez Corporation produces a variety of branded packaged meats. The level of production is scheduled to continue for the remaining months of the company's first half of fiscal year 2008. You have been given the following details from the company's operations for the month of January:

Sales $2,880,000
Good completed and transferred to finished goods during January had a cost of $2,520,000
Fixed manufacturing costs incurred during January $720,000
Variable manufacturing costs for goods sold in January $980,800
Fixed costs attached to goods sold during January $472,000
Variable selling and administrative expenses in January $456,000
Fixed selling and administrative expenses in January $656,000

1. Prepare a GAAP income statement for the month January.
2. Prepare a varibale costing income statement for the month of january.
3. Explain the difference in net income, if any. Show calculations