Variable Costing Income Statement The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): Sales Operating costs: (in millions) $170,840 Cost of products sold $(82,000) Marketing, administrative, and other expenses (54,670) Total operating costs $(136,670) $34,170 Operating income Assume that the variable amount of each category of operating costs is as follows: Cost of products sold Marketing, administrative, and other expenses (in millions) $46,130 22,210 a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions) Line Item Description Amount Amount a. Based on the data given, prepare a variable costing income statement for Procter & Gamble, assuming that the company maintained constant inventory levels during the period. The Procter & Gamble Company Variable Costing Income Statement (assumed) (in millions) Line Item Description Amount Amount Fixed costs: b. If Procter & Gamble reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing? If Procter & Gamble reduced its inventories during the period, then the cost of products sold would Thus, the total fixed costs of products sold on the absorption costing income statement would be fixed costs allocated to the beginning inventories. , and the operating income would be