Variable and Absorption Costing with high-low cost estimation and CVP Analysis Including Taxes Charger Company Income statement January 2012 Production and sales 40,000 Sales Revenue $1,000,000 Cost of goods manufactured and sold (500,000) Gross profit 475,000 General and administrative expenses 235,000 Net income before taxes 240,000 Income taxes at 0.40 (96,000) Net income after taxes $ 144,000 February 2012 Production and sales 50,000 Sales Revenue $1,250,000 Cost of goods manufactured and sold (625,000) Gross profit 625,000 General and administrative expenses 235,000 Net income before taxes 390,000 Income taxes at 0.40 (156,000) Net income after taxes $ 234,000 a. Using the high-low method, develop a cost estimating equation for total monthly manufacturing costs. b. Determine Charger Companys monthly break-even point. c. Determine the unit sales required to earn a monthly after-tax income of $ 150,000. d. Prepare a January 2012 contribution income statement using variable costing. e. If the January 2012 net income amounts differ using absorption and variable costing, explain why. If they are identical, explain why