Question 3 DC and Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the Company produce an identical number of units, although the sales in units differ from month to month. Sellin -ce Units in be Units duced Units sold Variable costs er unit Direct materials Direct Variable manufacturing overhead Variable selling and administrative Fixed costs Fixed manufacturin overhead Fixed s and administrative Required: Slil 400 8,800 8,900 S34 S37 S61,600 S169,100 109 360 6900 7200 29 31 2 7 53,500 145,000 1. 2. 3. Compute the total Contribution Margin. Compute the Operating Income under Variable Costing. Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.