Required: 1. Prepare a variable costing contribution format income statement for each year Heaton Company Variable Costing Income Statement Year 1 Year 2 S Sales 1,140,000 1,740,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses 0 0 Total variable expenses 1,140,000 40,000 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 0 Total fixed expenses 1,140,000 1,740,000 Net operating income