ACC- The Independence Company ACC- The Independence Company Question 5-A1 The Independence Company had the following manufacturing data for the year 2009 (in thousands of dollars): Save your time! Proper editing and formatting Free revision, title page, and bibliography Flexible prices and money-back guarantee ORDER NOW Beginning and ending inventories None Direct material used $400 Direct Labor 300 Supplies 20 Make sure you submit a unique essay Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. 100% ORIGINAL ORDER NOW Utilities-variable portion 40 Utilities-fixed portion 15 Indirect Labor-variable portion 90 Indirect Labor-fixed portion 50 Depreciation 200 Property Taxes 20 Supervisory salaries 60 Selling expenses were $300,000 (including $80,000 that were variable) and general administrative expenses were $144,000 (including $25,000 that were variable). Sales were $2.2 million. Direct labor and supplies are regarded as variable costs. 1. Prepare two income statements, one using the contribution approach and one using that absorption approach. 2. Suppose that all variable cost fluctuate directly in proportion to sales and that fixed costs are unaffected over a very wide range of sales. What would operating income have been if sales had been $2.0 million instead of $2.2 million? Which income statement did you use to help obtain your answer? Why?