SECTION B In your ANSWER BOOK, write the answer next to the correct question number. Show all necessary workings. Unless stated otherwise, please round your answers to the nearest two decimal places when necessary. Question 1(11 points) Vero, Inc. was a US company that began operations at the start of the current year, having a production target of 60,000 units. Actual production totaled 60,000 units, and the company sold 95% of its manufacturing output at $50 per unit. The following costs were incurred: Manufacturing: Direct materials used Direct labor $240,000 480,000 360,000 600,000 Variable manufacturing overhead Fixed manufacturing overhead Selling and administrative: Variable 180,000 630,000 Fixed A Assuming the use of variable costing, compute Vero's ending balance of finished-goods inventory. (2 points) 8. Prepare Vero's contribution format income statement under variable costing. Is this net operating income what Vero discloses to external investors? (6 points) C. Without calculating directly the net operating income under absorption costing, convert the variable cost income into absorption costing income via reconciliation. (3 points)