CD New is a direct marketer of popular music. The following information about its revenue and cost structure is available: Selling price $13.00 per CD Variable Costs: Direct Materials $ 1.00 Direct Labor 1.25 Variable Overhead .75 Selling and Admin 1.00 Fixed Costs: Overhead $1,000,000 per year Selling and Admin $3,000,000 per year Assume that 500,000 CDs are produced and 450,000 are sold in 2010. Required: a) What is net income under Variable Costing