Consider the following facts:

Prepare comparative income statements, using the contribution margin format for variable costing and the traditional format for full-absorption costing. Show the total results for Years 1 and 2 combined in addition to the results for each year individually.
There were no beginning inventories at the beginning of Year 1.

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Sales volume Production volume Selling price.... Variable manufacturing costs Fixed manufacturing costs Nonmanufacturing costs (all fixed) Year 1 Year 2 50,000 units 150,000 units 100,000 units 100,000 units $12 per unit $12 per unit $9 per unit $100,000 $ 50,000 $9 per unit $100,000 $ 50,000