baved Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income stateme under absorption costing for external reporting. For its first month of operations, 425 bikes were produced and 255 were sold; this 170 bikes in ending inventory. The income statement information under variable costing follows. Salen (255 * $1,725) Variable product cost (255 * $650) Variable selling and administrative expenses (255 * $60) Contribution margin Fixed overhead cost Pixed selling and administrative expense Net income $ 439,875 165,750 15,300 258,825 72,250 85,000 $ 101,575 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement