=+EX 21-26 Items on variable costing income statement On July 31, 2010, the end of the first month of operations, Hilton Company prepared the following income statement, based on the absorption costing concept:

Sales (20,000 units) . . . . . . . . . . . . . . . . . . . . . . . . . $1,400,000 Cost of goods sold:

Cost of goods manufactured . . . . . . . . . . . . . . . . . $1,050,000 Less ending inventory (4,000 units) . . . . . . . . . . . . 175,000 __________ Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . 875,000 __________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 525,000 Selling and administrative expenses . . . . . . . . . . . . . 75,000 __________ Income from operations . . . . . . . . . . . . . . . . . . . . . . $ 450,000 __________ __________