Variable Costing Income Statement The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): in millions) Sales 65.0 Operating costs Cost of products sold $32.535) Marketing, administrative, and other expenses (18.568 Total operating costs 51,103) Operating income Assume that the variable amount of each category of operating costs is as follows: (in Millions) Cost of products sold $19.500 Marketing, administrative, and other expres 14,000 a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Couting Income Statement (assumed) (in one) Pand DO b. If Procter & Gamble reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing? If Procter & Gamble Company reduced its inventories during the period, then the cost of products sold would - fixed costs allocated to the beginning inventories. Thus, the total fixed costs of products sold on the absorption costing income statement would be and the operating income would be