E$7-2$A$.$ Variable and Absorption Costing$-$Service Company Lawn RX$,$ Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $$140.$ The variable and fixed cost data are as follows:

During the year, $10,000$ service contracts were signed and $9,800$ service contracts were completed Lawn RX had no service contracts at the beginning of the year.

Required

a$.$ Calculate reported income for management.

b$.$ Calculate reported income for the bank.

c$.$ Reconcile the two income amounts.