For the year 2019, Vivians Vase Company produced 10,000 vases, but the company only sold 9,000 vases. Additional data, including an Absorption Costing income statement is below.

Manufacturing Costs: Variable costs $7.20 per unit (vase) Fixed costs (MOH) $25,000

Selling and Administration Costs: Variable costs $0.50 per unit (vase) sold Fixed costs $30,000

Sales price per vase $20

There was no inventory at the beginning of 2019.

Absorption Costing Income Statement for 2019

Sales	180,000
COGS	87,300
Gross Profit	92,700
Selling & Admin Expenses
Variable S+A	4,500
Fixed S+A	30,000
Total S+A	34,500
Operating Income	58,200

a. Prepare a Variable Costing income statement for the year 2019 using the contribution format. (Ignore income taxes). Use legible labeling, i.e. Sales, VC, FC, CM, Op Income, etc

b. Reconcile any difference between the two net income numbers by provide supporting calculations.