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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 $175. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $23.00 Fixed cost $100,000 Marketing general and administrative Variable cost per service contract completed) $24.00 Administrative expenses (fixed- per month $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 5 1662500 Cost of Goods Sold Beginning Inventory $ D Variable Costs 228000 Foxed Cost 42000 Less Ending Inventory Cost of Goods Sold 0 Type here to search O RI 403 9/16 E A Return to BusinessCourse a. Calculate reported income for management. Do not use negative signs with any answers. Absorption Costing Income Statement Sales $ 1662500 Cost of Goods Sold: Beginning Inventory $ 0 Variable Costs 228000 Fixed Cost 42000 Less: Ending Inventory Cost of Goods Sold Gross profit 0 Selling expense - 0 Administrative expense 0 Net Income $ o b. Calculate reported income for the bank. Do not use negative signs with any answers. Variable Costing Income Statement Sales E Business b. Calculate reported income for the bank. Do not use negative signs with any answers. Variable Costing Income Statement Sales $ Cost of Goods Sold: Beginning Inventory $ 0 Variable Costs 0 0 Variable cost of goods sold 0 0 Fixed costs: 0 0 Administrative Expense Total Fixed Cost Net Income 0 $ 0 Please answer all parts of the question. Check