DC-Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the company produces an identical number of units, although the sales in units differ from month to month. Selling price Product B $109 Units in beginning inventory 360 Units produced Units sold 6,900 7,200 Variable costs per unit: Direct materials $29 Direct labour $31 Variable manufacturing overhead $2 Variable selling and administrative $7 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $53,500 $145,000 Submission Instructions: 1. Compute the Contribution Margin. 2. Compute the Operating Income under Variable Costing. 3. Prepare a reconciliation from your Operating Income under Variable Costing to Operating Income under Absorption Costing. Show the differences between each method.