Using the Following Information, Prepare a Traditional Income Statement and a Variable

Essay

Using the following information, prepare a traditional income statement and a variable costing income statement:
$\begin{array}{|l|l|}\hline \text { Sales } & \$ 4,000,000 \\\hline \text { Variable cost of goods sold } & 1800,000 \\\hline \text { Variable selling expenses } & 900,000 \\\hline \text { Fixed selling expenses } & 100,000 \\\hline \text { Fixed manufacturing costs } & 600,000 \\\hline\end{array}$