Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. Selected data for the company's operations last year follow: Units in beginning inventory 0 Units produced 280 Units sold 265 Units in ending inventory 15 Variable costs per unit: Direct materials $ 150 Direct labor $ 370 Variable manufacturing 45 overhead Variable selling and $ administrative Fixed costs: Fixed manufacturing overhead $70,000 Fixed selling and $30,000 administrative 30 The absorption costing income statement prepared by the company's accountant for last year appears below: The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $259,700 215,975 Cost of goods sold 43,725 Gross margin Selling and administrative expense 37,950 Net operating income $ 5,775 2. Prepare an income statement for the year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Sales 259,700 Variable expenses: Variable cost of goods sold Variable selling and administrative expense 8,400 Fixed selling and administrative Contribution margin 8,400 251,300 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative 0 $ 251,300