PA$5-6($Static$)$ Comparing Full Absorption and Variable Costing $[$LO $5$S$-1]$

Consider the following information for Presidio Incorporated's most recent year of operations.

Number of units produced $2,000$

Number of units sold $1,300$

Sales price per unit $ $650\mathrm{.}00$

Direct materials per unit $60\mathrm{.}00$

Direct labor per unit $90\mathrm{.}00$

Variable manufacturing overhead per unit $40\mathrm{.}00$

Fixed manufacturing overhead per unit $($$$235,000-$: $2,000$ units$)117\mathrm{.}50$

Total variable selling expenses $($$$10$ per unit sold$)13,000\mathrm{.}00$

Total fixed general and administrative expenses $70,000\mathrm{.}00$

Required:

$2-$a$.$ Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.

$2-$b$.$ Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory.

$3.$ Compute the difference in profit between full absorption costing and variable costing.