Variable and Absorption Costing Ansara Company had the following abbreviated income statement for the year ended December 31, 2012: (in millions) Sales $24.930 Cost of goods sold $21,190 Selling, administrative, and other expenses 2,240 Total expenses $23,430 Income from operations Assume that there were $5,430 million fixed manufacturing costs and $1,230 million fed selling, administrative, and other costs for the year. The finished goods inventories at the beginning and end of the year from the balance sheet were as follows: January 1 $2,960 million December 31 $3,460 million Assume that 20% of the beginning and ending Inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period. a. Prepare an income statement according to the variable costing concept for Ansara Company for 2012 a. Prepare an income statement according to the variable costing concept for Ansara Company for a Ansara Company Variable Costing Income Statement For the Year Ended December 31, 20Y2 (in millions) Sales Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Ending inventory Total variable cost of goods sold Manufacturing margin Variable selling and administrative expense Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative e Total fixed costs Income from operations