This information was collected for the first year of manufacturing for Wifi Apps:

Prepare an income statement under variable costing and prepare a reconciliation to the income under the absorption method.

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Direct materials per unit Direct labor per unit $ Sales price Fixed manufacturing expenses Fixed selling and administration expenses LA LA $ $ Variable manufacturing overhead per unit Variable selling and administration expenses $ Units produced Units sold 1.75 3.50 0.55 1.25 50,000 40,000 13 $ $120,000 $ 35,000