#4. prepare a contribution margin income statement for the company for 2018 under variable costing

Major Company began operations on January 1, 2017. Cost and sales information for its first two calendar years are summarized below: Manufacturing costs: Direct materials $50 per unit Direct labor $25 per unit Factory overhead costs for the year: Variable overhead $10 per unit Fixed overhead $1,000,000 Nonmanufacturing costs: Variable selling and administrative $10 per unit Fixed selling and administrative $5,000,000 Production and sales data: Units produced, 2017 100,000 units Units sold, 2017 80,000 units Units in ending inventory, 2017 20,000 units Units produced, 2018 60,000 units Units sold, 2018 80,000 units Units in ending inventory, 2018 0 units Sales price per unit $500 per unit Required: 1. Prepare an income statement for the company for 2017 under absorption costing. 2. Prepare a contribution margin income statement for the company for 2017 under variable costing. 3. Prepare an income statement for the company for 2018 under absorption costing. 4. Prepare a contribution margin income statement for the company for 2018