Variable Costing Income Statement The following data were adapted from a recent income statement of Bluth Company: (in millions) Sales $ 166,630 Operating costs: Cost of products sold Marketing, administrative, and other expenses $79,980 53,320 $133,300 Total operating costs Income from operations $33,330 Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold Marketing, administrative, and other expenses $44,990 21,660 a. Based on the data given, prepare a variable costing income statement for Bluth Company, assuming that the company maintained constant inventory levels during the period. Bluth Company Variable Costing Income Statement (assumed) (in millions) $ Fixed costs: b. If Bluth Company reduced its inventories during the period, what impact would that have on the income from operations determined under absorption costing? If Bluth Company reduced its inventories during the period, then the cost of products sold would the total fixed costs of products sold on the absorption costing income statement would be fixed costs allocated to the beginning inventories. Thus, , and the income from operations would be