Variable and Absorption Costing-Service Company Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows: $25.00 $5.00 Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) Fixed cost (annual cost) $240,000 $5.00 $20,000 During 2019,4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory. a. Calculate reported income for management. Do not use negative signs with any answers. Absorption Costing Income Statement Sales 500,000 Cost of Goods Sold: Beginning Inventory $ 100,000 x Variable Costs 153,000 X Fixed Costs 240,000 Less: Ending Inventory 0 Cost of Goods Sold 493,000 x Gross profit 57,000 x Selling expense 45,000 x Administrative expense 0 x Net Income $ 12,000 x 500,000 . 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 100,000 x Variable Costs 153,000 x Less: Ending inventory 0 Variable cost of goods sold Variable selling expense Contribution margin Fixed costs: Overhead cost Administrative Expense 240,000 x Total Fixed Cost Net Income $ 253,000 x 45,000 x 252,000 x > 0x 0X 12,000 x A