exercise 2.51 portlan security company sells a security system key pad for $ 4

exercise 2.51 portlan security company sells a security system key pad for $ 400 per unit this product has the following cost

direct material $ 16400

dirct labor 70.80

manufacturing overhead based on planned production of 5000 units :

variabl 31.20

fixed 28.00

selling and adminstrative costs based on 6.500 units sold :

variabl 20.80

fixed 14.00 294 per unit

this year 1500 units were in begining finished goods inventory 5000 units were produced and 6500 units were sold the begining inventory was valued $ 266
per unit using varaible cost and $294 using absorption costthere were no begining and ending work in process invenotory

required

A prepare income statment for the year using varaible cost contribution margin format

B would reprted operateing profits be more less or the same if absorption costing were used ? support your conclusion with income statment using
absorptioncost