On July 31, 2008, the end of the first month of operations, Martin Company prepared the following income statement, based on the absorption costing concept:

Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $28,950 and the variable selling and administrative expenses were$32,000.

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Sales (14,000 units) .. Cost of goods sold: $616,000 Cost of goods manufactured._ . Less ending inventory (1,000 units) . . $558,750 . 37,250 Cost of goods sold Gross profit Selling and administrative expenses 521,500 94,500 58,200 36,300 .