1.
Please note the only options for the income statement are as follows:Please provide a response
for each blank shown in the screen shot only.
1) Sales
2) Net Operating Income
3) Contribution Margin
4) Variable selling and admin expenses or Fixed selling and admin expenses
5) Fixed manufacturing overhead
Solution
1) Total Fixed manufacturing overhead expenses in Ending Inventory 450000 2) Variable
Costing Income Statement Sales             7,520,000 Variable expenses:
Cost of goods sold             3,384,000 Variable selling and admin expenses
                152,000             3,536,000
Contribution Margin             3,984,000 Fixed expenses: Fixed
manufacturing overhead                 810,000 Fixed selling and admin
expenses                 430,000            Â
1,240,000 Net Operating Income             2,744,000