1. Given for Fern Company for its first year of operations: (20 points) Units of product manufactured 4.000 units Sales (3,500 product units) $150,000 Variable costs: Manufacturing $ 80,000 Selling and administrative $ 20,000 Fixed costs: Manufacturing $ 32,000 Selling and administrative $ 16,000 Ending inventory of work in process none Ending inventory of finished goods 500 units Assume a First-in-First-out (FIFO) Inventory Flow. Compute a. Contribution margin b. Gross margin C. Operating income by the absorption-costing method d. Operating income by the variable-costing method