Oak Mart, a producer of solid oak tables, reports the following data from its second year of business Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,500 unitsx $130) Fixed (3,500 units x $75) S 320 per unit 120,000 units 123,500 units 3,500 unit 455,000 262,500 717,500 Total Manufacturing costs this year Direct materials 48 per unit 62 per unit Direct labor Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed $3,200,000 $7,400,000 $1,350,000 4,000,000 1. Prepare the current-year income statement for the company using variable costing OAK MART COMPANY Variable Costing Income Statement $ Sales 39,520,000 Less: Variable costs Beginning inventory: $ 455,000 Variable costs Manufacturing costs this year 5,760,000 Direct materials 7,440,000 Direct labor Variable overhead costs 3,200,000 Total variable costs available 16,855,000 Less: Ending finished goods inventory 0 Variable cost of goods sold 123,500 Variable selling and administrative expenses Total variable costs 123,500 Contribution margin Manufacturing costs this year 5,760,000 Direct materials 7,440,000 Direct labor 3,200,000 Variable overhead costs 16,855,000 Total variable costs available Less: Ending finished goods inventory Variable cost of goods sold 123,500 Variable selling and administrative expenses Total variable costs 123,500 Contribution margin Net income (loss)