Variable Costing Income Statement The following data were adapted from a recent

Question

Variable Costing Income Statement The following data were adapted from a recent income statement of Bluth Company (in millions) Sales $193,330 Operating costs Cost of products sold $92,800 61,870 $154,670 $38,660 Assume that the variable amount of each category of operating costs is as follows: Marketing, administrative, and other expenses Total operating costs Income from operations (in millions) $52,200 25,130 Cost of products sold Marketing, administrative, and other expenses 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 milions) Sales Variable cost of products sold Variable marketing, administrative, and other expenses x 193,330 52,200v 25,130 X

Explanation / Answer

Variable costing income statement :

Sales 193330 Variable cost of goods sold (52200) Variable selling and administrative expense (25130) Total variable cost (77330) Fixed cost : 116000 Fixed manufacturing cost (40600) Fixed marketing,administrative and other expense (36740) Total fixed costs (77340) Income from operations 38660

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