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 $140. The variable and fixed cost data are as follows: Direct labor $80.00 Overhead Variable cost per unit $5.00 Fixed cost (annual) $100,000 Marketing, general and administrative Variable cost (per service contract completed) $6.00 Administrative expenses (annual fixed cost) $42,000 During 2019, 10,000 service contracts were signed and 9,800 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 Cost of Goods Sold: Beginning Inventory $ Variable Costs Fixed Cost Less: Ending Inventory Cost of Goods Sold e Administrative expense Net Income $ b. Calculate reported income for the bank. Do not use negative signs with any answers. Variable Costing Income Statement Sales $ Cost of Goods Sold: Beginning Inventory $ Variable Costs Variable cost of goods sold Fixed costs: Administrative Expense Total Fixed Cost Net Income