b. Prepare an income statement according to the variable costing concept for the month ending February 28.

Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at $500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Unit Number of Units Total Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $275.00 $5,500,000 Fixed 20,000 26.00 520,000 Total $301.00 $6,020,000 Manufacturing costs in February: Variable 130,000 $275.00 $35,750,000 Fixed 130,000 30.00 3,900,000 Total $305.00 $39,650,000 Selling and administrative expenses in February: Variable 150,000 $20.00 $3,000,000 Fixed 150,000 1.30 195,000 Total $21.30 $3,195,000 a. Prepare an income statement according to the absorption costing concept for the month ending February 28