Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%. Use this information to compute the amounts of (1) total dollar sales and (2) total variable costs. Exercise 18-14 Predicting sales and variable costs using contribution margin Il 700000 units of its product next year, which would generate total sales of Exercise 18-15 omputing variable a Exercise 19-5 Rey Company's single product sells at a price of $216 per unit. Data for its single product for its first year of operations follow. Prepare an income statement for the year assuming (a) absorption costing and Absorption costing and (b) variable costing. variable costing income statements P2 $20 per unit $28 per unit Direct materials Overhead costs $6 per unit $160,000 per year Selling and administrative expenses $18 per unit $200,000 per year 20,000 units Units produced (and sold)