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 $18,840 Cost of goods sold $(16,010) Selling, administrative, and other expenses (1,700) Total expenses $(17,710) Operating income $1,130 Assume that $4,140 million of cost of goods sold and $940 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning $2,260 Beginning inventory Ending inventory $2,640 Also, assume that 20% 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. Ansara Company Variable Costing Income Statement (assumed) For the Year Ended December 31 Sales 18,840 Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured 1,808 Ending inventory Total variable selling and administrative expenses Manufacturing margin Contribution margin X Variable cost of goods manufactured X Fixed costs: Variable cost of goods sold 10 O Fixed selling and administrative expenses Total fixed costs Operating income