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

Prepare an income statement under absorptioncosting.

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Trendwest Office Equipment Company Variable Costing Income Statement For the Month Ended May 31, 2010 Sales (12,000 units) Variable cost of goods sold: 648,000 Variable cost of goods manufactured $311.040 51,840 Variable cost of goods sold. .- . Manufacturing margin. . Variable selling and administrative expenses. 259,200 $388,800 168,000 $220,800 Fixed costs Fixed manufacturing costs Fixed selling and administrative expenses. $64,800 51,840 116,640 S104,160 Income from operations