Ida Sidha Karya Company is a family-owned company located 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 $970. Selected data for the company's operations last year follow: 200 180 20 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 130 300 30 15 $ 63,000 $ 25,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 174,600 139,500 35,100 27,700 $ 7,400 Req 1 Req 2A Req 2B Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Sales 174,600 23,400 X 54,000 5,400 X 2,700 X Variable cost of goods sold $ Variable selling and administrative expenses Fixed manufacturing overhead x $ Fixed selling and administrative expenses x $ Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 85,500 89,100 63,000 25,000 88,000 1,100 Net operating income $