Exercise 11-13 Prepare an income statem "sing the contribution margin approach LO 11.3 ost and $40,000 of varlable product cost during its first year of operation. Also during its first year, AJ incurred $16,000 of fixed selling and administrative costs and $13,000 of variable selling and administrative costs. The company sold all of the units it produced for $160,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). AJ MANUFACTURING COMPANY Income S