annual salaries. The output of the plant can be increased or decreased by pressing a few buttons on a keyboard. The following budgeted and actual data are for the operations of Z - Var. (Click the icon to view the budgeted and actual data.) Read the requirements. loss.) Start by preparing the (a) variable costing income statement for 2019,2020, and the 2 year total. Requirements 1. Prepare income statements with one column for 2019 , one column for 2020 , and one column for the 2 years together using (a) variable costing and (b) absorption costing. 2. What is the breakeven point under (a) variable costing and (b) absorption costing? 3. What inventory costs would be carried in the balance sheet on December 31, 2019 and 2020 , under each method? 4. Assume that the performance of the top manager of Z - Var is evaluated and rewarded largely on the basis of reported operating income. Which costing method would the manager prefer? Why