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. Sales (225 * $1,750) Variable product cost (225 * $700) Variable selling and administrative expenses (225 x $65) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 393,750 157,500 14,625 221,625 60,000 90,000 $ 71,625 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Net income (loss) Dro Mout