Majestic Industries has one product. Information about the production and sales of that product for the past year follow. (Click the icon to view the data.) The company had no beginning inventory. Read the requirements Requirement 1. Prepare two income statements for the year, one using absorption costing and one using variable costing. Begin by preparing the income statement for the year using absorption costing. Majestic Industries Income Statement (Absorption Costing) For the Year Ended Sales revenue $ 315,000 182,000 Less: Cost of goods sold Gross profit $ 133,000 57,000 Less: Operating expenses Operating income $ 76,000 Now prepare the income statement for the year using variable costing. Majestic Industries Contribution Margin Income Statement (Variable Costing) on and sales of that product for the past year follow. - X Data Table sing absorption costing on costing. Selling price per unit 45.00 Direct material per unit 13.00 Direct labor per unit. $ 3.00 Total annual manufacturing overhead ...........$ 130,000 Fixed portion of annual manufacturing overhead . $ 117,000 Variable operating expenses per unit sold ... $ 2.00 Fixed operating expenses per year in total... $ 43,000 Units manufactured . 13,000 Units sold ... 7,000 ..... Print Done 1) Now prepare the income statement for the year using variable costing. Majestic Industries Contribution Margin Income Statement (Variable Costing) For the Year Ended Sales revenue 315000 Less: Variable expenses Variable cost of goods sold Variable expenses Less: $ 76,000 Operatina income costing. Costing) 315 How pre Contribution margin Cost of goods sold Fixed expenses Fixed manufacturing overhead Fixed operating expenses Sales re Gross profit ess: Operating expenses Operating income Sales revenue Variable cost of goods sold Variable expenses Less: Variable operating expenses