Violins-by-Lucy produces student-grade violins for beginning violin students. The company produced 2,400 violins in its first month of operations. At month-end, 650 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $122.50 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. Lucy would also like to prepare contribution margin income statements for management use. Read the requirements. Data table Compute the following amounts that would be shown on these income statements: Requirement 1. Gross Profit Identify the formula, then compute the gross profit. Requirement 2. Contribution Margin Identify the formula, then compute the contribution margin. Gross profit = Contribution margin Requirement 3. Total expenses shown below the gross profit line Direct materials used. $ 109,400 Direct labor... $ 70,000 Variable manufacturing overhead $ 27,000 Fixed manufacturing overhead. $ 52,800 Variable selling and administrative expenses.. $ Fixed selling and administrative expenses .... $ 9,000 13,300 Requirements - X Print Done Compute the following amounts that would be shown on these income statements: 1. Gross Profit 2. Contribution Margin Total expenses below the gross profit line Requirement 4. Total expenses shown below the contribution margin line 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 7. Which income statement will have a higher operating income? By how much? Explain. Total expenses below the contribution margin line Print Done