Dion Co. reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 20,000 units, and 2,000 units remain in ending finished goods inventory for May. Fixed overhead was \(\$ 50,000\). Variable selling and administration expenses were \(\$ 30,000\) and fixed selling and administrative expenses were \(\$ 10,000\). Prepare an income statement using variable costing.

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Sales (18,000 units) Cost of goods sold...... Gross profit..... Selling and administrative expenses. Income.... $360,000 300,000 60,000 40,000 $ 20,000