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 costing 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 36,360,000 Inventory, October 31 (45,000 units) (1,000,000) Total variable cost of goods sold (5,200,000) 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) $1,680,000 Operating income Prepare an income statement under absorption costing Maryville Equipment Company Absorption Costing Income Statement $2,640,000 (330,000) $2,310,000 Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs $530,000 100,000 (630,000) Operating income $1,688,000 Prepare an income statement under absorption costing. Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 $ Cost of goods sold: Check My Work 10 more Check My Work uses remaining