Question 5 (Variable Costing) Wu Equipment Company manufactures and distributes industrial air compressors. The following data are available for the year ended December 31, 2020. The company had no beginning inventory. In 2020, it produced 1,500 units but sold only 1,200 units. The unit selling price was $4,500. Costs and expenses were as follows: Variable costs per unit Direct materials Direct labour Variable manufacturing overhead $ 800 1,500 300 Variable selling and administrative expenses 70 Annual fixed costs and expenses Fixed manufacturing overhead $1,200,000 Selling and administrative expenses 100,000 Prepare a 2020 income statement for Wu Company using variable costing. [5 marks]