Violins Galore produces student-grade violins for beginning violin students. The company produced 2,200 violins in its first month of operations. At month-end, 900 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $115.00 each. Total costs from the month are as follows: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers. Galore would also like to prepare contribution margin income statements for his own management use. Data table Requirements Direct materials used.. 88,800 Direct labour... 70,000 Variable manufacturing overhead 26,000 Fixed manufacturing overhead 41,800 Variable selling and administrative expenses 7,000 Fixed selling and administrative expenses 11,900 Print Done Compute the following amounts that would be shown on these income statements: Requirements 1. Gross profit 2. Contribution margin 3. Total expenses shown below the gross profit line 4. Total expenses shown below the contribution margin line 5. Dollar value of ending inventory under absorption costing 6. Dollar value of ending inventory under variable costing Which income statement has a higher operating income? By how much? Explain. Print Done