Chapter 6: Variable Costing Contribution Margin Income Statement WalCo manufactures and sells one product. The following information pertains to each of the company's rst two years of operations: Variable costs per unit: Manufacturing: Direct materials 35 25 Direct labor $ 15 Variable manufacturing overhead $ 5 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 250,000 Fixed selling and administrative expenses 35 80,000 During its rst year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $60 per unit. Prepare the Variable Costing Contribution format Income Statement for Year 1