Required information Exercise 6-11 (Algo) Absorption costing and variable costing Income statements LO P2 The following information applies to the questions displayed below) Oak Mart, a producer of solid oak tables, reports the following data from its first year of business Salas price per unit $ 320 per unit Units produced this year 115,000 units Units sold this year 115,000 units Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,000,000 per year Direct materials 5 44 per unit Direct labor $ 68 per unit Variable overhead $ 34 per unit Fixed overhead $ 7.000, 900 per year 2. Prepare the current-year income statement using absorption costing. 36,800,000 OAK MART Income Statement (Absorption Costing) Sales $ Cost of goods sold Gross profit Selling and administrative expenses Income 1,265,000 $ 36,800,000 OAK MART Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold $ 16,790,000 Variable selling and administrative expenses 1,265,000 18,055,000 Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses $ 7,000,000 4,000,000 11,000,000 Income