who will help with the cleaning, cutting, and general preparation of the ingredients. These costs are directly traceable labour costs to the XLB. Another five employees, who double up as wait staff and kitchen hands, receive fixed salaries. The chilli sauce is prepared by one of these employees, whose time cannot be directly traced to the product, as he performs other kitchen duties. Another kitchen hand, who assists in various work, including cleaning, operates a semi-automated vacuum packing machine for the chilli sauce. There is no systematic method to record the actual time associated with preparation and packaging of these two products. All staff working at the shop house are entitled to share an eight percent bonus on the shop house revenue. Starting from January 2020, the owners' elder son Adam, joined the company as a full-time employee on a salary of $60,000 per annum. Adam is also entitled to share the eight percent revenue bonus. The budget set aside for sales and marketing activities is estimated at three percent of its shop house revenue. For sales through the local supermarkets, shelf space and promotion charges of 10 percent of the retail price for XLB and 12 percent of the retail price for chilli sauce apply. The 2019 audited financial statements recorded administrative and other expenses totalling $1,339,000. This amount included the two owners' salaries and other fixed expenses, such as depreciation expenses. Required: The various costs identified for 2020 should be differentiated into variable and fixed costs for the income statement under variable costing by assuming: Finance cost being 2.6 percent on the average loan amount of $500,000; and Fixed costs incurred in 2020 remained the same in 2019. Present an estimated variable costing income statement by sales channel and product line.