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Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results: $1,747,200 Sales (22,400 x $78) Manufacturing costs (22,400 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Fixed selling and administrative expenses 1,055,040 250,880 116,480 138,880 37,800 45,700 Variable selling and administrative expenses The company is evaluating a proposal to manufacture 24,800 units instead of 22,400 units, thus creating an Inventory, October 31 of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 22,400 and 24,800 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter "0". Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 22,400 Units Manufactured 24,800 Units Manufactured Cost of goods sold: Income from operations a. 2. Prepare an estimated income statement, comparing operating results if 22,400 and 24,800 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter "O". Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 22,400 Units Manufactured 24,800 Units Manufactured Q00000d Qudo, Variable cost of goods sold

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