Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 5,400 tons of plastic and sold 4,725 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,300, variable manufacturing costs were 16% of the sales price of units produced, variable selling expenses were 8% of the selling price of units sold, fixed manufacturing costs were $3,618,000, and fixed administrative expenses were $500,000. Prepare income statements for each year using variable costing. JACKSON COMPANY Income Statement For the Year Ended December 31, 2016 Variable Costing Sales $ 10867500 Variable Cost of Goods Sold Inventory, January 1 $ 0 Costs of Goods Manufactured 1987200 Variable Costs of Goods Available for Sale 1987200 Inventory, December 31 248400 Variable Cost of Goods Sold 1738800 Variable Selling Expenses 869400 869400 Contribution Margin 8259300 Fixed Manufacturing Overhead $ 3618000 Fixed Administrative Expenses 500000 4118000 Net Income/(Loss) $ 4141300 JACKSON COMPANY Income Statement For the Year Ended December 31, 2017 Variable Costing Sales $ 12,420,000 Variable Cost of Goods Sold Net Income/(Loss) $ 4141300 JACKSON COMPANY Income Statement For the Year Ended December 31, 2017 V Variable Costing Sales $ 12,420,000 Variable Cost of Goods Sold Inventory, January 1 $ 248,400 Variable costs of Goods Manufactured 1,738,800 Variable Costs of Goods Available for Sale 1,987,200 Inventory, December 31 0 Variable Cost of Goods Sold 1,987,200 Variable Selling Expenses 993,600 993,600 Contribution Margin 9,439,200 Fixed Manufacturing Overhead $ 3,618,000