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. Income statement information under variable costing follows. Sales (225 $1,600) Variable cost of goods sold (225 x $625) Variable selling and administrative expenses (225 $65) Contribution margin Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing Sales HAYEK BIKES Income Statement (Absorption Costing) Cost of goods sold $360,000 140,625 14,625 204,750 56,250 75,000 $ 73,500 0