(p. 329), set up an income state¬

ment using the contribution-margin format by creating rows for “Revenues,” “Beginning Inventory,” “Variable Manufacturing Costs,” “Cost of Goods Available for Sale,” “Ending Inventory,” “Variable Cost of Goods Sold,” “Variable Marketing Costs,” “Total Variable Costs,” “Contribution Margin,” “Fixed Manufacturing Costs,” “Fixed Marketing Costs,”

“Total Fixed Costs,” and “Operating Income.” Create columns for April and May.

Complete this income statement using the data you created in steps 1 and 2.

4. Skip two rows, and create another subsection, “Panel B: Absorption Costing.” Following the format in Panel B, Exhibit 9-2, set up an income statement using the gross-margin format by creating rows for “Revenues,” “Beginning Inventory,” “Variable Manufacturing Costs,” “Fixed Manufacturing Costs,” “Costs of Goods Available for Sale,” “Ending Inventory,” “Cost of Goods Sold,” “Gross Margin,” “Variable Marketing Costs,” “Fixed Marketing Costs,” “Total Marketing Costs,” and “Operating Income.” Create columns for April and May. Complete this income statement using data you created in steps 1 and 2.

5. Verify the accuracy ofyour spreadsheet. Go to your Original Data section and change fixed manufacturing costs for April and May from $2,000,000 to $2,500,000. If you pro¬

grammed your spreadsheet correctly, operating income under absorption costing for April should change to $2,480,000.