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; this left 160 bikes in ending inventory. The income statement information under variable costing follows.

Sales (240 $1,650)	$	396,000
Variable product cost (240 $650)		156,000
Variable selling and administrative expenses (240 $55)		13,200
Contribution margin		226,800
Fixed overhead cost		72,000
Fixed selling and administrative expense		85,000
Net income	$	69,800

1. Prepare this company's income statement for its first month of operations under absorption costing. (Round your intermediate calculations to the nearest whole dollar.) HAYEK BIKES Absorption Costing Income Statement Sales $ 396,000 ess: Cost of goods sold Variable product costs Fixed overhead costs $ 156,000 43,200 Cost of goods sold Gross margin Selling general and administrative expenses 199,200 196,800 ariable selling and administrative expenses ixed selling and administrative costs 13,200 85,000 Total selling general and administrative expenses Net income (loss) 98,200 $ 98,600 $ 28,800 et income under absorption costing is higher than net income under variable costing by: Number of units added to(subtracted from) inventory Fixed overhead cost per unit Fixed costs added to inventory 1801