Variable Costing Income Statement

The following data were adapted from a recent income statement of Bluth Company:

	(in millions)
Sales	$306,440
Operating costs:
Cost of products sold	$147,090
Marketing, administrative, and other expenses	98,060
Total operating costs	$245,150
Income from operations	$61,290

Assume that the variable amount of each category of operating costs is as follows:

			(in millions)
Cost of products sold			$82,740
Marketing, administrative, and other expenses			39,840

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
(in millions)
Net sales		$
Variable cost of products sold
Manufacturing margin		$
Variable marketing, administrative, and other expenses
Contribution margin		$
Fixed costs:
Fixed manufacturing costs	$
Fixed marketing, administrative, and other expenses
Income from operations		$