Vegan, LLC, owns a chain of gourmet vegetarian take-out markets. Vegan’s income statement in the traditional reporting format for the month follows.
Vegan, LLC,
Income Statement
For the Month
Sales ..................... $890,000
Cost of goods sold ................. 607,000
Gross margin ................... $283,000
Selling and administrative expenses:
Variable .................... (44,500)
Fixed ..................... (72,300)
Operating income ................. $166,200
Total fixed production costs for the month were $140,000.
Prepare an income statement for Vegan, LLC, for the month, using the variable costing format.