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, 400 bikes were produced and 240 were sold; this left 160 bikes in ending inventory. The income statement information under variable costing follows.

Sales (240 $1,625)

$

390,000

Variable production cost (240 $625)

150,000

Variable selling and administrative expenses (240 $65)

15,600

Contribution margin

224,400

Fixed overhead cost

60,000

Fixed selling and administrative expense

95,000

Net income

$

69,400

Prepare this company's income statement for its first month of operations under absorption costing. (Round your intermediate calculations to the nearest whole dollar.)

HAYEK BIKES
Absorption Costing Income Statement
Net income (loss)