Problem 3 Magenta Company provided the following information regarding activity in 20X9: Sold 2,500 units at $50 per unit Variable manufacturing costs were $16 per unit Fixed manufacturing costs were $50,000 Sales commissions were paid at 10% of revenues Administrative costs, all fixed, totaled $10,000 Prepare income statements for Magenta Company using the absorption cost format (standard GAAP approach) and the variable cost format (contribution margin approach). Absorption Cost Format . Variable Cost Format (Contribution Margin Approach)