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

Prepare an income statement under absorption costing.

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Sullivan Equipment Company Variable Costing Income Statement For the Month Ended March 31 $66,000,000 Variable cost of goods sold Variable cost of goods manufactured $45,000,000 5,400,000) Total variable cost of goods sold...... 39,600,000 $26,400,000 2,400,000 24,000,000 Manufacturing margin Variable selling and administrative expenses . .. Fixed costs: $7,500,000 375,000 Fixed selling and administrative ex Total fixed costs. 7875000 16,125,000