Value Strings produces student-grade violins for beginning violin students. The company produced 2,500 violins in its first month of operations. At month end, 750 finished violins remained unsold. There was no inventory in work in progress. Violins were sold for $122.50 each. Total costs from the month are as follows: Direct materials used: $125,000 Direct labor: $50,000 Variable manufacturing overhead: $32,000 Fixed manufacturing overhead: $42,500 Variable selling and administrative expenses: $8,000 Fixed selling and administrative expenses: $12,100 The company prepares traditional (absorption costing) income statements for its bankers. Value Strings would also like to prepare contribution margin income statements for management use. Compute the following amounts that would be shown on these income statements. 1. Gross profit 2. Contribution margin 3. Total expenses shown BELOW the GROSS PROFIT line 4. Total expense shown BELOW the CONTRIBUTION MARGIN line 5. Dollar value of ending inventory under absorption costing 6. Dollar value of ending inventory under variable costing 7. Which income statement will have a higher operating income? By how much? Explain. This requires 2 income statements. Please read instructions carefully.