prepare an income statement for the past year in the variable cost format. use the following heading

PR 6-5B Variable costing income statement and effect on income of change in operations Obj. 4 v3. Income from Kimbrell Inc. manufactures three sizes of utility tables -small (S), medium (M, and lge (L) operations, $106,820 The income statement has consistently indicated a net loss for the M size, and management is considering three proposals: (I) continue Size M, (2) discontinue Size M and reduce total output accordingly, or (3) discontinue Size M and conduct an advertising campaign to expand the sales of Size S so that the entire plant capacity can continue to be used. XCEL TEMPLATE Continued)