Baxtell Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 45 Direct labour 13 Variable manufacturing overhead 4 Variable selling and administrative 6 Fixed costs per year: Fixed manufacturing overhead 375,000 Fixed selling and administrative expense 238,500 During the year, the company produced 31,250 units and sold 26,500 units. The selling price of the companys product is $94 per unit.

Prepare an income statement for the year under variable costing.