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, 350 bikes were produced and 225 were sold. Income statement information under variable costing follows. Sales (225 x $1,750) Variable cost of goods sold (225 * $600) Variable selling and administrative expenses (225 * $65) Contribution margin Fixed overhead Fixed selling and administrative expenses Income $ 393,750 135,000 14,625 244,125 63,000 85,000 $ 96,125 Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing)