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		108,750	units
Units in beginning-year inventory		3,750	units
Beginning inventory costs
Variable (3,750 units $130)	$	487,500
Fixed (3,750 units $75)		281,250
Total	$	768,750
Manufacturing costs this year
Direct materials	$	40	per unit
Direct labor	$	68	per unit
Overhead costs this year
Variable overhead	$	3,200,000
Fixed overhead	$	7,000,000
Selling and administrative costs this year
Variable	$	1,500,000
Fixed		4,000,000

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

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