This information was collected for the first year of manufacturing for Appliance Apps:

Prepare an income statement under variable costing, and prepare a reconciliation to the income under the absorption method.

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Direct materials per unit Direct labor per unit $ Sales price Fixed manufacturing expenses Fixed selling and administration expenses LA LA $ Variable manufacturing overhead per unit $ Variable selling and administration expenses $ Units produced Units sold 2.50 1.50 0.25 1.75 40,000 35,000 12 $ $140,000 $ 20,000