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 in bank Lawn RX provides a quarterly care services sold for $170. The variable and fed cost data are as follows Det er 310000 Overhead water 11900 11000u Mentaminative Variatico per cervice contract completed 12000 Administrative expenses per month 12.000 During 2016, 10.000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management. Do not use negative signs with any answers. Absorption Costing Income Statement Sales $ 1,615,000 Cost of Goods Sold: Beginning Inventory $ 0 Variable Costs 190,000 x Fixed Cost 100,000 Less: Ending Inventory (14,500) X Cost of Goods Sold 275,500 x Gross profit 1,339,500 x Selling expense 0 x Administrative expense 232,000 X Net Income $ 1,107,500 x 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: Beginning Inventory $ 0 Variable Costs 180,500 X Less: Ending inventory 190,000 x Variable cost of goods sold 370,500 x Variable sellingexpense 0 x Contribution margin 1.244,500 x Fixed costs: Overhead cost 100,000 Administrative Expense 42,000 Total Fixed Cost 142,000 Net Income $ 1,102,500 x