The income statement in the traditional reporting format for Green Products, Inc., for the year ended December 31, is as follows:
Green Products, Inc.
Income Statement
For the Year Ended December 31
Sales......................................................... $296,400
Cost of goods sold.......................................... 112,750
Gross margin.................................................... $183,650
Operating expenses
Selling expenses
Variable......................................................... 69,820
Fixed............................................................ 36,980
Administrative expenses....................................... 27,410
Operating income............................................. $ 49,440
Total fixed manufacturing costs for the year were $16,750. All administrative expenses are considered to be fixed.
Using this information, prepare an income statement for Green Products, Inc., for the year ended December 31, using the variable costing format.