Absorption Costing Income Statement

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

Sullivan Equipment Company Variable Costing Income Statement For the Month Ended March 31
Sales (264,000 units)			$66,000,000
Variable cost of goods sold:
Variable cost of goods manufactured	$45,000,000
Inventory, March 31 (36,000 units)	(5,400,000)
Total variable cost of goods sold			39,600,000
Manufacturing margin			$26,400,000
Variable selling and administrative expenses			2,400,000
Contribution margin			$24,000,000
Fixed costs:
Fixed manufacturing costs	$ 7,500,000
Fixed selling and administrative expenses	375,000
Total fixed costs			7,875,000
Income from operations			$16,125,000

Prepare an income statement under absorption costing.

Sullivan Equipment Company
Absorption Costing Income Statement
For the Month Ended March 31
Sales		$
Cost of goods sold:
Cost of goods manufactured	$
Inventory, March 31
Total cost of goods sold
Gross profit		$
Selling and administrative expenses
Income from operations		$