Morey Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below MOREY COMPANY Income Statement Sales (40,000 units at $33.75 per unit) Cost of goods sold: $1,350,000 Beginning inventory Add cost of goods manufactured 1,050,000 (50,000 units at $21 per unit) Goods available for sale Less ending inventory (10,000 units at $21 per unit) 1,050,000 210,000 840,000 Gross margin Selling and administrative expenses 510,000 420,000 Operating income $ 90,000 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $3 per unit sold in variable expenses. The company's $21 per unit product cost given above is computed as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead ($250,000+50,000 units) Unit product cost $10 5 $21 Required 1. Redo the company's income statement in the contribution format using variable costing. Variable Costing Income Statement Variable expenses