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Variable and Absorption Costing-Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service th The variable and fixed cost data are as follows: Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) $34.00 Administrative expenses (fixed- annual cost) $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. Sales Cost of Goods Sold: a. Calculate reported income for management. Do not use negative signs wi any answers. Absorption Costing Income Statement Beginning Inventory Variable Costs Fixed Cost Less: Ending Inventory Cost of Goods Sold Gross profit Selling expense Administrative expense Net Income >> $100.00 $ $33.00 $100,000 0 1,330,000 0x 0 x $ 1,805,000 $ b. Calculate reported income for the bank. Do not use negative signs with any answers. 0 x 0x 0x 0x 0 x

Variable and Absorption Costing-Service Company The variable and ford costiva are as follow: During 2016, 10,000 service contracts were signed and 2,500 service contracts were completed Lawn Rx had no service contracts at the befinning of the year: 2. Calculate reported income for manogernent ponocuse regative signs with any answers. Q. Calculate reported income for the bank

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