Variable Costing Income Statement The following data were adapted from a recent income statement of Procter & Gamble Company: (in millions) Sales $84,167 Operating costs: Cost of products sold Marketing, administrative, and other expenses $42,428 30,337 $72,765 $11,402 Total operating costs Income from operations Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold $23,760 12,135 Marketing, administrative, and other expenses a. Based on the data given, prepare a variable costing income statement for Procter & Gamble Company, assuming that the con inventory levels during the perlod. Procter and Gamble Company that the inventory levels during the period. Procter and Gamble Company D Variable Costing Income Statement Fixed costs: b. If Procter & Gamble reduced its inventories during the period, what impact would that have on the income from operations determined under absorption costing? v fixed costs allocated to the beginning inventorles. Thus, the total fixed costs of products sold on the absorption costing income statement would be income from operations would be w and the Previous Next