Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit	$	320	per unit
Units produced this year		105,000	units
Units sold this year		108,000	units
Units in beginning-year inventory		3,000	units
Beginning inventory costs
Variable (3,000 units $135)	$	405,000
Fixed (3,000 units $80)		240,000
Total	$	645,000
Manufacturing costs this year
Direct materials	$	42	per unit
Direct labor	$	68	per unit
Overhead costs this year
Variable overhead	$	3,000,000
Fixed overhead	$	7,200,000
Selling and administrative costs this year
Variable	$	1,350,000
Fixed		4,200,000

1. Prepare the current-year income statement for the company using variable costing.

OAK MART COMPANY
Variable Costing Income Statement
Beginning inventory:
Manufacturing costs this year
Net income (loss)