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

Sales price per unit	$	300	per unit
Units produced this year		105,000	units
Units sold this year		108,250	units
Units in beginning-year inventory		3,250	units
Beginning inventory costs
Variable (3,250 units $135)	$	438,750
Fixed (3,250 units $80)		260,000
Total	$	698,750
Manufacturing costs this year
Direct materials	$	50	per unit
Direct labor	$	62	per unit
Overhead costs this year
Variable overhead	$	3,400,000
Fixed overhead	$	7,000,000
Selling and administrative costs this year
Variable	$	1,450,000
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 0 0