A company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year:

	Number of gallons produced...........................................	75,000
	Number of gallons sold...................................................	70,000
	Sales price........................................................................	$3.00 per gallon
	Unit product cost under variable costing........................	$1.45 per gallon
	Total contribution margin................................................	$84,000
	Total fixed manufacturing overhead cost........................	$63,000
	Total fixed selling and administrative expense...............	$10,500

a. Absorption costing income statement is already given below.

b. PLEASE PROVIDE THE VARIABLE COSTING INCOME STATEMENT. THANKS

a. Absorption costing income statement S210,000 Sales (70,000 x S3.000.................................................... Cost of goods sold: Beginning inventory Add cost of goods manufactured (75,000 x S2.29*) 71.150 Goods available for sale 171,750 11.450 160.300 Less ending inventory (5,000 x S2.29). 49,700 Gross margin Selling and administrative expenses 35.000 Net operating income 4.70 S1.45 ($63.000/75.000) Total variable cost S210,000-$84,000 S126,000; Variable selling and administrative $126,000-(S1.45 x 70,000) $24.500 b. Variable costing income statement