1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement Sales 37 760,000 Less: Cost of goods sold Beginning inventory Variable costs Fixed costs Manufacturing cost this year Variable overhead costs 0 Net income (loss) Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs 320 per unit 115,000 units 118,000 units 3,000 units Variable (3,000 units x $135) Fixed (3,000 units x $80) Total s 405,000 240,000 645,000 Manufacturing costs this year Direct materials Direct labor Overhead costs this year 40 per unit 62 per unit Variable overhead Fixed overhead $3,220,000 $7,400,000 Selling and administrative costs this year Variable Fixed $1,416,000 4,600,000