Variable Costing Income Statement The following data were adapted from a recent income statement of The Bluth Company: Sales Operating costs: (in millions) $276,520 Cost of products sold $(132,730) Marketing, administrative, and other expenses (88,490) Total operating costs $(221,220) Operating income $55,300 Assume that the variable amount of each category of operating costs is as follows: Cost of products sold Marketing, administrative, and other expenses (in millions) $74,660 35,950 a. Based on the data given, prepare a variable costing income statement for Bluth, assuming that the company maintained constant inventory levels during the period. The Bluth Company Variable Costing Income Statement (assumed) (in millions) Fixed costs: 00 000000 a. Based on the data given, prepare a variable costing income statement for Bluth, assuming that the company maintained constant inventory levels during the period The Bluth Company Variable Costing Income Statement (assumed) (in millions) Fixed cost: b. If the Bluth company reduced its inventories during the period, what impact would that have on the operating income determined under aboration conting If the cluth company reduced its inventories during the period, then the cost of products sold would casting incame statement would be and the operating income would be t xed costa allocated to the beginning inventories. Thus, the total fixed costs of products sold on the abortion