Sales (18,500 units)				$2,590,000
Production costs (24,000 units):
Direct materials		$1,243,200
Direct labor		597,600
Variable factory overhead		297,600
Fixed factory overhead		199,200		2,337,600
Selling and administrative expenses:
Variable selling and administrative expenses		$362,300
Fixed selling and administrative expenses		140,300		502,600

b. Prepare an income statement according to the variable costing concept