On July 31, the end of the first month of operations, Del Ray Equipment Company prepared the following income statement, based on the variable costing concept:

Prepare an income statement under absorption costing.

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Del Ray Equipment Company Variable Costing Income Statement For the Month Ended July 31, 2016 Sales (50,000 units). Variable cost of goods sold: $6,250,000 $3,100,000 600,000 Variable cost of goods sold 2,500,000 $3,750,000 1,575,000 $2,175,000 Fixed costs: 620,000 487,500 Fixed selling and administrative expenses...... 1,107,500 $1,067.500