P3-73B Determine financial statement components (Learning Objective 7) Music World produces student-grade violins for beginning violin students. The companv produced 2,100 violins in its first month of operations. At month-end, 550 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: Direct materials ued.... Direct labour Variable manufacturing overhead. Fixed manufacturing overead. $87 200 60,00 25,000 44,100 8,000 1390 Variable selling and administrative expense.. Fixed selling and administrative expens The company prepares traditional (absorption costing) income statements for its bank- ers. Hannah would also like to prepare contribution margin income statements for her own management use. 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