Menu Variable and Absorption Costing-Service Company Lawn RX. Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $195. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $35.00 Fixed cost $100,000 Marketing, general and administrative Variable cost (per service contract completed) Administrative expenses (fixed - per month) $36.00 $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management. Do not use negative signs with any answers. Absorption Costing Income Statement Sales S 1,852,500 Cost of Goods Sold: Beginning Inventory 0 Variable Costs 17,500 X 100,000 72,500 Fixed Cost Less: Ending Inventoryy