Trevor Co. reports the variable costing income statement below for June. The company began the month with no finished goods inventory. It produced 10,000 units in June, and 2,000 units remain in ending finished goods inventory. Prepare an income statement using absorption costing.

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Sales (8,000 units).. Variable expenses Variable cost of goods sold .... Variable selling and administrative expenses...... Contribution margin Fixed expenses Fixed overhead... Fixed selling and administrative expenses. Income..... $225,000 35,000 8,000 12,000 $320,000 260,000 60,000 20,000 $ 40,000