18 eBook 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, 425 bikes were produced and 255 were sold. Income statement information under variable costing follows. Sales (255 x $1,800) Variable cost of goods sold (255 $675) Variable selling and administrative expenses (255 x $65) Contribution margin Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) $ 0 0 $ 459,000 172, 125 16,575 270,300 85,000 95,000 $ 90,300

Hayek Bikes prepares the income statenent under varlable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 425 bikes were produced and 255 were sold. Income statement information under variable costing follows. Prepare the compary's income statement under absorption costing