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 rst month of operations. 3?5 bikes were produced and 225 were sold. Income statement information under variable costing follows. Sales {225 x $1,725} $ 333,125 Variable cost of goods sold [225 * 3650} 146,250 Variable selling and administrative expenses {225 X $65} 14,625 Contribution margin 227,250 Fixed overhead 56,250 .'E'ixed selling and administrative expenses 35,000 Income $ 36,000 Prepare the company's income statement under absorption costing