A B D 1 FORMULA1 0 2 VARCOST 3 Variable Costing 4 5 Data Section 6 7 Actual production in units 100,000 8 Sales in units 80,000 9 Sales price per unit $30 10 Variable manufacturing costs per unit $14 $2 11 Variable selling costs per unit 12 Fixed manufacturing costs $315,000 13 Fixed selling expenses $100,000 14 15 Answer Section 16 17 Income statement: Absorption costing 18 19 Sales 20 Cost of goods sold: 21 Variable manufacturing costs FORMULA2 22 Fixed manufacturing costs FORMULA3 23 Total goods available for sale $0 24 Less ending inventory FORMULA4 25 Cost of goods sold 26 Gross profit 27 Selling expenses: 28 Fixed selling expenses FORMULA5 29 Variable selling expenses FORMULA6 30 Total selling expenses 31 Operating income 32 33 34 Income statement: Variable costing 35 36 Sales 37 Cost of goods sold: 38 Variable manufacturing costs FORMULAZ 39 Less ending inventory FORMULAS 40 Variable cost of goods sold 41 Manufacturing margin 42 Variable selling expenses 43 Contribution margin 44 Fixed costs: 45 Fixed manufacturing costs FORMULA10 0 46 Fixed selling expenses 47 Total fixed costs 48 Operating income 49 50 $0 0 $0 $0 0 $0 FORMULAS $0 0 $0