2. Sleepwalking Inc., manufactures and sells bunny slippers. The fabric cost per pair is $ 11.5, and each pair requires 12 minutes of direct labor to produce with the hourly direct labor cost being $ 12. The variable manufacturing overhead cost to produce each pair is $ 0.50. The total fixed manufacturing overhead cost is made up of factory rent $ 240,000. each year and equipment depreciation of $ 60,000. The budgeted production is 10,000 pairs a year. Sleepwalking sells the slippers at $ 72.00 a pair, and pays a commission to its sales staff of $ 3.60 a pair on sales. The administration salaries are $12,000 a month and office rent is $5,000 a month. This year's sales in pairs were 9,000 and production was 10,500 pairs, with no beginning inventory this year. What is the variable manufacturing cost per pair, the total variable cost per pair, the total absorption manufacturing cost per pair, and the contribution margin per pair? Prepare both a traditional (absorption costing) and a contribution margin income statement for the year, and reconcile the operating income for the two methods