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. Income statement information under variable costing follows. Sales (240 x $1,725) Variable cost of goods sold (240 $675) Variable selling and administrative expenses (240 x $65) Contribution margin Fixed overhead Fixed selling and administrative expenses $ 414,000 162,000 15,600 236,400 72,000 80,000 $ B4,400 Income Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) Sales 414,000 Cost of goods sold Gross profit 84,400 Selling and administrative expenses 95,600 Income (11,200)