1 Name: 2 Jarvix Corporation, which has only one product, has provided the following data for the first two periods of operations: 3 4 Selling price per unit 5 Variable costs per unit $50.00 6 Variable manufacturing costs $26.50 7 Selling expenses $4.00 8 Fixed costs 9 Fixed manufacturing overhead $759,000 10 Administrative expenses $180,000 11 12 Units Period 1 Period 2 13 Beginning inventory 0 3,000 14 Production 50,000 46,000 15 Sales 47,000 49,000 16 Ending inventory 3,000 0 17 18 The absorption costing income statements for the first two periods follow: 19 20 Sales 21 Cost of goods sold 22 Gross margin Period 1 Period 2 $2,350,000 $2,450,000 1,958,960 2,103,040 391,040 346,960