Variable and Absorption Costing Summarized data for 2019 (the first year of operations) for Trenton Products, Inc., are as follows: Sales (100,000 units) $8,000,000 Production costs (105,000 units) Direct material 2,100,000 Direct labor 1,680,000 Manufacturing overhead: Variable 1,260,000 Fixed 1,050,000 Operating expenses: Variable 560,000 Fixed 640,000 a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales $ 8,000,000 Cost of Goods Sold: Beginning Inventory $ 0 Direct materials 2,100,000 Direct labor 1,680,000 Manufacturing overhead 2,310,000 Less: Ending Inventory 290,000 Cost of Goods Sold 5,800,000 Gross profit 2,200,000 Operating expenses 1,200,000 Net Income (Loss) $ 1,000,000 $ b. Prepare an income statement based on variable costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Variable Costing Income Statement Sales $ 8,000,000 Variable cost of Goods Sold: Beginning Inventory 0 Direct materials 2,100,000 Direct labor 1,680,000 Variable manufacturing overhead - 1,260,000 Less: Ending Inventory 240,000 Variable cost of goods sold 4,800,000 Variable operating expenses 560,000 Contribution margin 2,640,000 Fixed costs: Manufacturing overhead 1,050,000 Operating expenses 640,000 Total Fixed Cost 1,690,000 Net Income (Loss) $ 950,000 c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $56 per unit. Which income statement presents the most relevant data? variable costing Determine the apparent profit or loss on the special order based solely on these data. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. $ 2,400 x