52. On October 31, the end of the first month of operations, Morristown & Co, prepared the following income statement based on absorption costing: Morristown & Co. Absorption Costing Income Statement For the Month Ended October 31 Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $ 85,500 Ending inventory (400 units) (11,400) Total cost of goods sold (74.100) Gross profit $ 42,900 Selling and administrative expenses (21.500) Operating income $ 21,400 If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $ 14,600, prepare an income statement using variable costing. Morristown & Co. Absorption Costing Income Statement For the Month Ended October 31 Sales Variable cost of goods sold: Variable cost of goods manufactured Ending inventory Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income