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Variable and Absorption Costing The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $27,970 Cost of goods sold Selling, administrative, and other expenses $(23,770) (2,520) Total expenses $(26,290) Operating income $1,680 Assume that $6,150 million of cost of goods sold and $1,400 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $3,360 Ending inventory $3,920 Also, assume that 40% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Ansara Company. Round numbers to nearest million. a. Prepare an income statement according to the variable costing concept for Ansara Company. Round numbers to nearest million. Ansara Company Variable Costing Income Statement (assumed) For the Year Ended December 31 Sales 27,970 Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Ending inventory Total variable cost of goods sold Manufacturing margin $ Variable selling and administrative expenses Contribution margin $ Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs 11 Operating income