Variable Costing Income Statement

The following data were adapted from a recent income statement of The Procter & Gamble Company (PG):

Line Item Description	(in millions)
Sales	$70,950
Operating costs:
Cost of products sold	$(35,250)
Marketing, administrative, and other expenses	(19,994)
Total operating costs	$(55,244)
Operating income	$15,706

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

Line Item Description	(in millions)
Cost of products sold	$21,150
Marketing, administrative, and other expenses	14,000

Question Content Area

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.

Line Item Description	Amount	Amount
Contribution marginManufacturing marginSalesVariable cost of products soldVariable marketing, administrative, and other expenses		$- Select -
Contribution marginFixed marketing, administrative, and other expensesManufacturing marginVariable cost of products soldVariable marketing, administrative, and other expenses		- Select -
Contribution marginFixed manufacturing costsManufacturing marginVariable cost of products soldVariable marketing, administrative, and other expenses		$- Select -
Contribution marginFixed manufacturing costsFixed marketing, administrative, and other expensesVariable cost of products soldVariable marketing, administrative, and other expenses		- Select -
Contribution marginFixed marketing, administrative, and other expensesManufacturing marginSalesVariable cost of products sold		$- Select -
Fixed costs:
Fixed manufacturing costsFixed manufacturing marginFixed net salesVariable cost of products soldVariable marketing, administrative, and other expenses	$- Select -
Fixed marketing, administrative, and other expensesFixed manufacturing marginFixed net salesVariable cost of products soldVariable marketing, administrative, and other expenses	- Select -	blank
Contribution marginManufacturing marginOperating incomeSalesTotal fixed costs		- Select -
Operating incomeLoss from operations		$- Select -