$3,000,000 880,000 720.000 544,000 320,000 Sales (75,000 units) Production costs (80,000 units Direct material Direct labor Manufacturing overhead Variable Fixed Operating expenses Variable Fixed Depreciation on equipment Real estate taxes Personal property taxes (inventory & equipment) Personnel department expenses 168,000 240,000 60,000 18,000 28,800 30,000 5 a. Prepare an income statement based on full absorption costing, Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales 3000000 Cost of Goods Soid: Beginning Inventory $3200000 Direct materials 880000 Direct labor 720000 Manufacturing overhead 864000 Less: Ending Inventory 200000 Cost of Goods Sold Contribution margin Operating expenses 408000 Net Income (LOSS) 0 > 0 0