1. Prepare contribution format variable costing and absorption costing income statements for the year 2020 (show computation)

2. Reconcile the variable costing and absorption costing net operating incomes.

David Company operating result under absorption costing below: The company's selling and variable cost per unit remained constant from year to year. The Company has a total fixed manufacturing overhead of $60,000 and fixed selling and administrative expenses of $20,000 per year. Company uses first-in first-out (FIFO) inventory method