Absorption Costing Income Statement On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable casting concept: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units) $7,920,000 Variable cost of goods sold: Variable cost of goods manufactured $6,360,000 Inventory, October 31 (45,000 units) (1,080,000) Total variable cost of goods sold (5,280,000) Manufacturing margin $2,640,000 Variable selling and administrative expenses (330,000) Contribution margin $2,310,000 Fixed costs: Fixed manufacturing costs $530,000 Fixed selling and administrative expenses 100,000 Total fixed costs (630,000) Operating Income $1,680,000 Prepare an income statement under absorption costing. Prepare an income statement under absorption costing. Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 $ Cost of goods sold: $1 LA UA