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 (5,400,000) 39,600,000 Inventory, March 31 (36,000 units) Total variable cost of goods lold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Income from operations Prepare an income statement under absorption costing. $26,400,000 2,400,000 $24,000,000 $7,500,000 375,000 7,875,000 $16,125,000