Q-5: Klumper 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) $1,350,000 Cost of goods sold: Beginning inventory Nil Add cost of goods manufactured 1.050,000 (50,000 units at S21 per unit) Goods available for sale... 1,050,000 Less ending inventory (10,000 units at $21 per unit) 210,000 840.000 Gross margin 510,000 Selling and administrative expenses 420.000 Net operating income $ 90,000 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and S3 per unit sold in variable expenses. The company's $21 per unit product cost given above is computed as follows: Direct materials $10 Direct labour Variable manufacturing overhead 2 Fixed manufacturing overhead ($250.000 / 50,000 units) .. 5 Unit product cost Required: Redo the company's income statement in the contribution format using variable costing, Q-6: The Nizwa Poly Clinic provides a variety of health services to newborn babies and their parents. The clinic is organized into a number of departments, one of which is the Immunization Center. A number of costs of the clinic and the Immunization Center are listed below