Problem 2 - Fill in the blank Sales ................................... $800,000 $640,000 $800,000 Cost of goods sold ......................... 580.000 400.000 820.000 Gross margin ............................. 220,000 240.000 100.000 Selling and administrative expenses ........... 190,000 180,000 190,000 Net operating income (loss) .................. $ 30,000 $ 60.000 S (10,000) Production in units ....... 50,000 60,000 40,000 Sales in units ........... 50.000 40,000 50,000 Additional information about the company follows: 1. The company's plant is highly automated. Variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) total only $2 per unit, and xed manufacturing overhead costs total $480,000 per year. 2. Fixed manufacturing overhead costs are applied to units of product on the basis of each years production. BBA2101_ACT2620 Fundamental of Managerial Accounting 20211Review Exercises 3. Variable selling and administrative expenses were 51 per unit sold in each year. Fixed selling and administrative expenses totaled $140,000 per year. 4. The company uses a FIFO inventory flow assumption. Determine the amount of the following using the given data lib. Questions Arm I- 2. Year 1 total contribution margin. 3. Year 3 xed manufacturing overhead deferred in the ending inventory. - 4 Year 2 xed manufacturing overhead released in the beginning inventory. .5. Year 2 variable costing net operating income