The results of operations for the Preston Manufacturing Company for the fourth quarter of 2017 were as follows: Sales Less: $660,000 $130,000 285,000 65,750 55,000 45,200 Sales Less variable cost of sales Contribution margin Less fixed production costs Less fixed selling and administrative expenses Income before taxes Less taxes on income Net income $120,000 55,000 $550,000 330,000 220,000 175,000 45,000 18,000 $ 27,000 Note: Preston Manufacturing uses the variable costing method. Thus, only var