Question 1Question Question 2

e en operations, an Equlpment Company prepared the TolloMng Income statemeht, based on the vanable Costing concep Sullivan Equipment Company Variable Costing Income Statement For the Month Ended March 31 Sales (264,000 units) $66,000,000 Variable cost of goods sold Variable cost of goods manufactured $45,000,000 (5,400,000) Inventory, March 31 (36,000 units) Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: 39, 600,000 $26,400,000 2,400,000 $24,000,000 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs 7,500,000 375,000 7,875,000 Income from operations $16,125,000 Prepare an income statement under absorption costing Sullivan Equipment Company Absorption Costing Income Statement For the Month Ended March 31 Sales 66,000,000 Cost of goods sold: Cost of goods manufactured 45.000.000 | Inventory, March 31 39,600,000 X Total cost of goods sold Gross profit Selling and administrative expenses Income from operations 46,200,000 19,800,000 2.775.000 17,025,000