The following data were adapted from a recent income statement of Procter & Gamble Company:

1 (in millions)

2 Sales $84,167.00

3 Operating costs:

4 Cost of products sold $42,428.00

5 Marketing, administrative, and other expenses 30,337.00

6. Total operating costs $72,765.00

7. Income from operations $11,402.00

Assume that the variable amount of each category of operating costs is as follows:

1 (in millions)

2 Cost of products sold $23,760.00

3 Marketing, administrative, and other expenses 12,135.00

Required: A. Based on the data given, prepare a variable costing income statement for Procter & Gamble Company, assuming that the company maintained constant inventory levels during the period. If a net loss is incurred, enter that amount as a negative number using a minus sign.

B. If Procter & Gamble reduced its inventories during the period, what impact would that have on the income from operations determined under absorption costing? . Based on the data given, prepare a variable costing income statement for Procter & Gamble Company, assuming that the company maintained constant inventory levels during the period. If a net loss is incurred, enter that amount as a negative number using a minus sign. Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions)