Absorption and Variable Costing Comparisons Peachtree Company manufactures peach jam. Because of bad weather, its peach cr Beginning inventory (cases) Cases produced Cases sold Sales price per case 0 10,000 9,200 $60 Direct materials per case $6 Direct labor per case $8 Variable manufacturing overhead per case $3 Total fixed manufacturing overhead $400,000 Variable selling and administrative cost per case $2 Fixed selling and administrative cost $48,000 Functional Income Statement Contribution Income Statement Ending Inv (b) Prepare a contribution income statement for the quarter using variable costing. Peachtree Company Contribution (Variable Costing) Income Statement For the Summer Quarter 2009 Sales $ 552000 Variable expenses: Manufacturing $ 0 Selling and administrative 18400 0 Contribution margin 0 Fixed expenses: Manufacturing overhead $ 400000 Selling and administrative 48000 448000 Net income (loss) $ -70800