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 5,700 tons of plastic and sold 5,130 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,200, variable manufacturing costs were 17% of the sales price of units produced, variable selling expenses were 12% of the selling price of units sold, fixed manufacturing costs were $3,876,000, and fixed administrative expenses were $500,000.

Your answer is partially correct. Try again. Prepare income statements for each year using variable costing. JACKSON COMPANY Inoome Statement For the Year Ended December 31, 2016 Y Variable Costing 12540000 Variable Cost of Goods Sold Inventory, January 1 Variable Costs of Goods Manufacturedv Variable Costs of Goods Available for Sale Inventory, December 31 Variable Cost of Goods Sold Contribution Margin Fixed Manufacturing Overhead Fixed Administrative Expenses Net Income/(Loss) JACKSON COMPANY