"Company A" produced 100,000 units and sold 80,000 units.

Income Statement(Absoprtion Costing)
Sales 80000x50 per unit	4,000,000
COGS	2,400,000
Gross Prof	1,600,000
Selling & Admin Expenses	540000
Income	1,060,000

Selling and admin expenses consist of $400,000 in annual fixed expenses and $1.75 per unit in variable selling and administrative expenses.

The company's product cost of $30 per unit consists of the following.

Direct Materials	3 Per Unit
Direct Labour	18 Per Unit
Var. Overhead	2 Per unit
Fixed Overhead 700,000/100,000	7 Per Unit

Create a Variable costing income statement