Value Strings produces student-grade violins for beginning violin students. The company produced 2,500 violins in its first month of operations. At month-end, 750 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: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers. Value Strings would also like to prepare contribution margin income statements for management use. Read the requirements. i Data Table ments: Direct materials used 125,500 profit Direct labor 50,000 23200 Variable manufacturing overhead 32,000 Fixed manufacturing overhead 42,500 Variable selling and administrative expenses $ 8,000 Fixed selling and administrative expenses 12,100 Print Done Requirement 1. Gross Profit Identify the formula, then compute the gross profit. Requirement 2. Contribution Margin Identify the formula, then compute the contribution margin. = Gross profit = = Contribution margin == Requirement 3. Total expenses shown below the gross profit line Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. Total expenses shown below the contribution margin line + = Total expenses below the contribution margin line Requirement 5. Dollar value of ending inventory under absorption costing The dollar value of ending inventory under absorption costing is $ Requirement 6. Dollar value of ending inventory under variable costing The dollar value of ending inventory under variable costing is $ Requirement 7. Which income statement will have a higher operating income? By how much? Explain. income statement will have a higher operating income by $ The Under absorption costing Under variable costing, these costs are Choose from any list or enter any number in the input fields and then continue to the next