Using the following information, prepare: 1) Traditional Income statement (18 points),

2) Variable Costing Income statement (21 points).

Sales $ 5,000,000

Variable Cost of Goods Sold 1,500,000

Variable Selling Expenses 700,000

Fixed Selling expenses 175,000

Fixed manufacturing costs 500,000

Traditional Income Statement: Variable Costing Income Statement:

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Operating Income $ ______________ ________________________________

Operating Income $ ____________