On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:

If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were $165,000, prepare an income statement according to the variable costing concept.

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Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (275,000 units).. Cost of goods sold: Cost of goods manufactured (300,000 units) . Inventory, April 30 (25,000 units)..... Total cost of goods sold .... Gross profit........ Selling and administrative expenses Operating income.... $ 4,950,000 $4,050,000 (337,500) (3,712,500) $ 1,237,500 (275,000) $ 962,500