1.Variable manufacturing costs are $30 per unit, and variable selling costs are $10 per unit.Fixed manufacturing costs are $16 per unit at an output of 10,000 units.Fixed selling costs are $60,000. In 2021 ABC produced 8,000 units and sold 7,000 at a price of $100 each.

a. variable cost (contribution margin) income statement

b. absorption cost income statement

2.ABC has 2 segments, North and South.North has a segment margin of $50,000 and traceable fixed costs of $20,000 and South a segment margin of $45,000 and traceable fixed costs of $35,000.Common fixed costs are $40,000.

a. What is total income?

b. What would total income be if ABC closed the South segment?