Global Music produces student-grade violins for beginning violin students. The company produced 2,600 violins in its first month of operations. At month-end, 800 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $125.00 each. Total costs from the month are as follows: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers. Global would also like to prepare contribution margin income statements for management use. Read the requirements. Compute the following amounts that would be shown on these income statements: Requirement 1. Gross Profit Identify the formula, then compute the gross profit. = Gross profit Requirement 2. Contribution Margin Identify the formula, then compute the contribution margin. = Contribution margin Requirement 3. Total expenses shown below the gross profit line + = Total expenses below the gross profit line Requirement 4. Total expenses shown below the contribution margin line + = Total expenses below the contribution margin line Requirement 5. Dollar value of ending inventory under absorption costing The dollar value of ending inventory under absorption costing is $ Requirement 6. Dollar value of ending inventory under variable costing The dollar value of ending inventory under variable costing is $ Requirement 7. Which income statement will have a higher operating income? By how much? Explain. The income statement will have a higher operating income by $ . Under absorption costing Under variable costing, these costs are x i Data Table Direct materials used .. $ 108,600 $ 70,000 $ 32,000 Direct labor.... Variable manufacturing overhead Fixed manufacturing overhead. Variable selling and administrative expenses Fixed selling and administrative expenses $ 59,800 ... $ 12,000 $ 13,900 Print Done