1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is tied to minimizing ending inventory, which costing method would the manager prefer in the currew year? Variable Manufacturing Costs Fixed Manufacturing $10 per unit Overhead $8F $7 $6 per unit $4 per unit $2 per unit $9 $4 $100,000 per year Selling & Administrative Costs Per Year 45,000 Fixed Per year $0 per unit Direct materials Direct labor Variable overhead 85,000 Callinn Drien Sales Price $100 Dorial Selling Price = $100 per unit Variable per year Sales Price Selling Price $100 Per Unit Units Produced vs Units Sold Units Sold 1500 units 10,000 units Units Produced 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using variable costing. WALTMAN CO. Income Statement (Variable Costing) Sales For Year Ended December 31 $ 750,000 Less: Variable expenses Variable cost of goods sold $ 150,000 Variable selling and administrative expenses 85,000 235,000 Contribution margin 515,000 Less: Fixed expenses Fixed overhead Fixed selling and administrative costs Income (100,000) (45,000) $ (145,000) 370,000 Req 1 Req 2 > This part is all correct Past answers Req2: Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using absorption costing. WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using absorption costing. WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 Sales Cost of goods sold Gross profit Net loss Income $ 750,000 < Req 1 Req 3 and 4 > Sales Cost of goods sold Gross profit Gross profit Income Req 1 Req 2 Req 3 and 4 $ 750,000 120,000 X 500,000 450,000 $ 320,000X Prepare an income statement for the year using absorption costing. WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 This section I do not know how to solve, please help Sales Cost of goods sold Gross profit Net income Income $ 750,000 120,000 x 500,000 < Req 1 Req 3 and 4 >