Absorption and Variable Costing Income Statements: Production Exceeds Sales Glendale Company sells its product at a unit price of $12.00. Unit manufacturing costs are direct materials, $2.00; direct labor, $3.00; and variable manufacturing overhead, $1.50. Total fixed manufacturing costs are $22,500 per year. Selling and administrative expenses are $1.00 per unit variable and $10,000 per year fixed. Though 25,000 units were produced during 2009, only 17,000 units were sold. There was no beginning inventory. (a) Prepare a functional income statement using absorption costing. (Do not use negative signs with your answers.) Glendale Company Functional (Absorption Costing) Income Statement Sales For the year 2009 Cost of goods sold Gross profit Other expenses: Variable selling and administrative $ Fixed selling and administrative Net income $ $ (b) Prepare a contribution income statement using variable costing. (Do not use negative signs with your answers.) Glendale Company Contribution (Variable Costing) Income Statement For the year 2009 Sales $ Variable expenses: Cost of goods sold $ Selling and administrative Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Net income $