Income Statement using absorption costing *
Sales revenueLESS: cost of goods soldgross profitLESS: operating expensesOPERATING INCOMECalculations:Sales revenue is same as variable costing from above 2) cost of goods sold: fixed manufacturing overhead in total for the year / units manufactured and sold for the year. + variable manufacturing costs per unit manufactured X units manufactured and sold for the year3) operating expenses: # of units X variable operating expenses per unit sold + fixed operating expenses