Variable and Absorption Costing$-$Service Company

Lawn RX$,$ Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $$175.$ The variable and fixed cost data are as follows:

Direct labor $$100\mathrm{.}00$

Overhead

Variable cost per unit $$23\mathrm{.}00$

Fixed cost $$100,000$

Marketing, general and administrative

Variable cost $($per service contract completed$)$ $$24\mathrm{.}00$

Administrative expenses $($fixed$-$ per month$)$ $$42,000$Variable and Absorption Costing$-$Service Company

During $2016,10,000$ senvice contracts were signed and $9,500$ service cantracts were compicecd. Lawn fX had no service contracts at the beginning of the year.

Coloulate reported income for management.

Do noc use negative signa with any anawers.

b$.$ Caiculate reported income for the bonk.

Do noc use negative signt with any answers.