Vinson Co. manufactures and sells one product. Assume the selling price for each item is $200/per unit. The following information pertains to the companys first two years of operation:

Variable Costs Per Unit:

Manufacturing:

Direct Materials $32/unit

Direct Labor $20/unit

Variable Manufacturing Overhead $4/unit

Variable Selling and Administrative $3/unit

Fixed Costs:

Fixed Manufacturing Overhead $660,000

Fixed Selling and Administrative $120,000

Additionally, Vinson Company provides you with the following inventory flow information in terms of units for YEAR 1 & YEAR 2:

YEAR 1 YEAR 2

Beginning Inventory (units) 0 20,000

Units Produced 100,000 75,000

Units Sold 80,000 90,000

Ending Inventory (units) 20,000 5,000

-Prepare the Companys YEAR 1 & 2 Traditional Income Statement---properly label and show all amounts

-Do the Contribution Margin and Traditional Income Statements provide differing Net Income amounts. If so, what are they and explain in detail using NUMBERS FROM YOUR ANALYSIS ABOVE why they are different.