In the first year of operations, ending December 31, 2020, Domi Corporation sold 32,000 units at $38 each, and produced 34,000 units. Additional information is as follows:

Variable costs per unit:
Direct material	$3
Direct labour	8
Variable manufacturing overhead	4
Variable selling and administrative	3
Total fixed costs per year:
Fixed manufacturing overhead	$306,000
Fixed selling and administrative	240,000

Required:

1. Prepare a contribution format income statement in good form using variable costing. (9 marks)
2. Calculate the difference in operating income between variable costing and absorption costing. Do not prepare an absorption costing income statement. (2 marks)