Variable and Absorption Costing The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: (in millions) Sales $38,537 Cost of goods sold $(28,309) Selling, administrative, and other expenses (9,730) $(38,039) 5498 Total expenses Operating income Assume that $8,500 million of cost of goods sold and $4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory Ending inventory $9,700 8.614 Also, assume that 30% of the beginning and ending inventories were foxed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. Caterpillar Inc. Variable Costing Income Statement (assumed) For the Year Ended December 31 Sales Variable cost of goods sold Beginning inventory 6.290.00 35517.00