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. VAICO ICVolur 232,000 Less: Cost of goods sold Gross profit $ 152,000 X 68,000 i Requirements Less: Operating expenses $ Operating income 84,000 Now prepare the income statement for the year using variable costing. 1. a. c. Majestic Industries Contribution Margin Income Statement (Variable Costing) For the Year Ended Sales revenue $ 384,000 Less: Variable expenses Variable cost of goods sold 240000 Variable operating expenses 16,000 Contribution margin 128000 Prepare two income statements for the year, one using absorption costing and one using variable costing. Use those statements to answer the following questions: What is the product cost per unit using absorption costing? b. What is the product cost per unit using variable costing? What is the ending inventory balance using absorption costing? d. What is the ending inventory balance using variable costing? What is cost of goods sold using absorption costing? f. What is cost of goods sold using variable costing? g. What is operating income using absorption costing? h. What is operating income using variable costing? What is the underlying reason for the difference in operating income between the two costing methods? e. 2. Less: Fixed expenses Fixed manufacturing overhead Print Done 120,000 52,000 Fixed operating expenses -44000 Operating income 1 Data Table -X Selling price per unit ... $ 48.00 Direct material per unit $ 15.00 Direct labor per unit $ 5.00 Total annual manufacturing overhead. $ 135,000 Fixed portion of annual manufacturing overhead $ 120,000 Variable operating expenses per unit sold ...... $ 2.00 Fixed operating expenses per year in total ...... $ 52,000 Units manufactured .. 15,000 Units sold ... 8,000 Print Done