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Violins Galore produces student-grade violins for beginning violin students. The company produced 2 200 vioins in its first month of operations. Al month-end, 500 finished

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Violins Galore produces student-grade violins for beginning violin students. The company produced 2 200 vioins in its first month of operations. Al month-end, 500 finished violin remained unsold. There was no inventory in work in process. Violins were sold for $125.00 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 management use Compute the following amounts that would be shown on these income statements Requirement 1. Gross Profit Identify the formula, then compute the gross profit Grossrolt Requirement 2. Contribution Margin Identify the formula then compute the contribution margin Contribution margin Requirement 3. Total expenses shown below the gross profit line Total expenses below the gross profitne Requirement 4. Total expenses shown below the contribution margin line Requirement 4. Total expenses shown below the contribution margin line + Total expenses below the contribution marginine Requirement 5. Dollar value of ending Inventory under absorption costing The dollar value of ending inventory under absorption contings Requirement 6. Dollar value of ending inventory under variable couting The dollar value of ending inventory under variable conting is Requirement 7. Which income statement will have a higher operating income? By how much? Explain The income statement will have a higher operating income by Under absorption costing Under variable costing, these costs are Data Table Direct materials used $ 122,800 $ 35,000 Direct labor 27,000 $ $ 41,800 Variable manufacturing overhead $ Fixed manufacturing overhead $ Variable selling and administrative expenses $ Fixed selling and administrative expenses .... $ 9,000 .. 13,900 al Print Done ell er va

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