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

Prepare an income statement under absorption costing.

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Seger Equipment Company Variable Costing Income Statement For the Month Ended May 31, 2012 Sales (36,000 units).... $4,320,000 Variable cost of goods sold: Variable cost of goods manufactured.. $2,073,600 Less inventory, May 31 (7,200 units).. Variable cost of goods sold Manufacturing margin..... Variable selling and administrative expenses Contribution margin....... 345,600 1,728,000 $2,592,000 1,080,000 $1,512,000 Fixed costs: $ 432,000 Fixed manufacturing costs Fixed selling and administrative expenses. Income from operations.... ...... 345,600 777,600 $ 734,400