Variable and Absorption Costing Service Company Lawn Boxinc. prepares a variable costing income statement for internal management and an absorption costing income statement for isbank. Lawn RX provides a quarterly lawn care service that is sold for $170. The variable and fed cost data are as follows Owl 110000 Oil Vare 18.00 Mares de Variatico 10.00 During 2016, 10.000 service contracts were med and 9.500 service contracts were completed. Law RX had no service contracts at the beginning of the year a. Calculate reported income for management Do not use negative with any answers Absorption Income Same Sales 1615.000 Custof Goods Sot 0 Van Cours Tieto 100.000 Less Ending wory 1140 Goods Sold 27.300 Group 1.1 500 . 0 Seling Ad expense 22.000 Putinom 107.500 b. Calculate reported income for the bank. Do not use negative signs with any answers. Variable Costing Income Statement Sales $ 1,615,000 Cost of Goods Sold: $ O O 0 0 Beginning Inventory Variable Costs Less: Ending inventory Variable cost of goods sold Variable sellingexpense Contribution margin - Fixed costs: Overhead cost Administrative Expense 0 1,244,500 100,000 42,000 Total Fixed Cost 142,000 $ 1,102,500 Net Income Variable and Absorption Costing Service Company Lawn Boxinc. prepares a variable costing income statement for internal management and an absorption costing income statement for isbank. Lawn RX provides a quarterly lawn care service that is sold for $170. The variable and fed cost data are as follows Owl 110000 Oil Vare 18.00 Mares de Variatico 10.00 During 2016, 10.000 service contracts were med and 9.500 service contracts were completed. Law RX had no service contracts at the beginning of the year a. Calculate reported income for management Do not use negative with any answers Absorption Income Same Sales 1615.000 Custof Goods Sot 0 Van Cours Tieto 100.000 Less Ending wory 1140 Goods Sold 27.300 Group 1.1 500 . 0 Seling Ad expense 22.000 Putinom 107.500 b. Calculate reported income for the bank. Do not use negative signs with any answers. Variable Costing Income Statement Sales $ 1,615,000 Cost of Goods Sold: $ O O 0 0 Beginning Inventory Variable Costs Less: Ending inventory Variable cost of goods sold Variable sellingexpense Contribution margin - Fixed costs: Overhead cost Administrative Expense 0 1,244,500 100,000 42,000 Total Fixed Cost 142,000 $ 1,102,500 Net Income