Requirement $1.$ Prepare an income statement for the upcoming year using variable costing.

O'Mally's Products

Contribution Margin Income Statement $($Variable Costing$)$

For the Year Ended December $31$

Requirements

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Prepare an income statement for the upcoming year using variable costing.

Prepare an income statement for the upcoming year using absorption

costing.

Selling price per unit is $$60$

Variable manufacturing costs per unit manufactured $($includes direct

materials $[$DM$],$ direct labor $[$DL$],$ and variable MOH $)$ $$36$

Variable operating expenses per unit sold $$1$

Fixed manufacturing overhead $(MOH)$ in total for the year $$99,000$

Fixed operating expenses in total for the year $$93,000$

Units manufactured and sold for the year $11,000$ units