On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept:

Prepare an income statement under absorption costing.

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Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units)...... Variable cost of goods sold: Variable cost of goods manufactured. Inventory, October 31 (45,000 units) . Total variable cost of goods sold.. Manufacturing margin...... Variable selling and administrative expenses Contribution margin..... $ 7,920,000 $ 6,360,000 (1,080,000) (5,280,000) $ 2,640,000 (330,000) $ 2,310,000 Fixed costs: $ 530,000 Fixed manufacturing costs .. Fixed selling and administrative expenses.. 100,000 Total fixed costs.... (630,000) $ 1,680,000 Operating income....