7. Consider the following information for Presidio Inc.'s most recent year of operations.

Number of units produced		2,700
Number of units sold		1,650
Sales price per unit	$	660.00
Direct materials per unit		80.00
Direct labor per unit		110.00
Variable manufacturing overhead per unit		60.00
Fixed manufacturing overhead per unit ($319,140 2,700 units)		118.20
Total variable selling expenses ($11 per unit sold)		18,150.00
Total fixed general and administrative expenses		77,000.00

Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.

Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.

Presidio, Inc.
Full Absorption Income Statement
Gross Margin
Less: Non-Manufacturing Expenses
Net Operating Income

Complete a variable costing income statement for Presidio. Assume there was no beginning inventory.

Presidio, Inc.
Variable Costing Income Statement
Contribution Margin
Less: Fixed Costs
Net Operating Income

Compute the difference in profit between full absorption costing and variable costing.

Difference in Profit