ME HOW Print Item Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (15,200 x $53) Manufacturing costs (15,200 units): $805,600 Direct materials Direct labor Variable factory overhead Fixed factory overhead Fixed selling and administrative expenses 484,880 115,520 53,200 63,840 Variable selling and administrative expenses 17,400 21,000 The company is evaluating a proposal to manufacture 16,800 units instead of 15,200 units, thus creating an ending inventory of 1,600 units. Manufacturing the additional