2. Assume that the company uses variable costing a. Compute the unit product cost. (2 marks) b. Prepare an income statement for the year. (10 marks) Variable Costing Income Statement di Sales Variable expenses: Variable cost of goods sold Beginning inventory Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold Variable selling expense Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative Operating income 2. Assume that the company uses variable costing a. Compute the unit product cost. (2 marks) b. Prepare an income statement for the year. (10 marks) Variable Costing Income Statement di Sales Variable expenses: Variable cost of goods sold Beginning inventory Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold Variable selling expense Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative Operating income