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Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1. Sales, 16,000 units $640,000 Cost of goods sold 432,000 Gross

Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1.

Sales, 16,000 units $640,000

Cost of goods sold 432,000

Gross margin $208,000

Selling and administrative expenses 92,000

Operating income $116,000

Additional information follows:

Selling and administrative expenses include $3 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $22 per unit. Actual fixed costs were equal to budgeted fixed costs.

Required: Prepare a variable costing income statement for the same period.

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