Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 375 bikes were produced and 225 were sold: this left 150 bikes in ending inventory. The income statement information under variable costing follows Salos (225 * $1,600) Variable production cost (225 * $625) Variable selling and administrative expenses (225 * $65) $360,000 140,625 14,625 Contribution margin Fixed overhead cost Fixed selling and administrative expense 204,750 56,250 75,000 Net income $ 73,500 1. Prepare this company's income statement for its first month of operations under absorption costing, HAYEK BIKES Absorption Costing Income Statement Sales $ 360,000 Less: Cost of goods sold Variable production costs Fixed overhead costs Cost of goods sold Gross margin Variable selling and administrative Fixed selling and administrat 12 Sell 1 13 181 91 16 lol Net income (oss) LIS Not income under absorption costing s 2 18 costing by: 150 0 Fixed costs added to inventory