2. Compudesk., Inc. makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last years operation follow: 10 Units in beginning inventory 0 Units produced 10,000 Units sold 1000 Units in ending inventory 1,000 Variable cost per unit: Direct material $ 60 Direct labor 30 Variable manufacturing overhead 10 Variable selling & administrative overhead 20 Total variable cost per unit $120 Fixed costs: Fixed manufacturing overhead $3,00,000 Fixed selling & administrative overhead 4,50,000

Required- Prepare the companys income statement in the contribution format using variable costing & absorption costing.