Daniel's Trains sells train kits for children with a selling price of $25 per kit. You are given the following information about the manufacturing costs for each kit: Direct materials per kit Direct labor per kit Variable overhead per kit Variable selling costs per kit Fixed selling costs (in total) Fixed overhead costs (in total) Sales 50,000 kits were produced this year, and 40,000 kits were sold. Part 1: Using the information above, prepare a direct or contribution margin income statement. (round to the nearest whole dollar, with no decimal places) Less: Variable costs Contribution Margin Less: Fixed selling Fixed overhead Operating income Sales Part 2: Using the information above, prepare an absorption (or GAAP) income statement. (round the the nearest whole dollar, with no decimal places) Less: Cost of Goods Sold Gross Profit Less: Variable Selling $5 $3 $2 $2 Fixed Selling $50,000 $75,000 Operating income

50,000 kits were produced this year, and 40,000 kits were sold. Part 1. Using the information above, prepare a direct or contribution margin income statement. (round to the nearest whole dollar, with no decirnal places)