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 $7,920,000 $6,360,000 (1,080,000) (5,280,000) Sales (220,000 units) Variable cost of goods sold: Variable cost of goods manufactured Inventory, October 31 (45,000 units) 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 $2,640,000 (330,000) $2,310,000 $530,000 100,000 (630,000) $1,680,000 Operating income Prepare an income statement under absorption costing. Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold