Company prepared the following absorption-costing income statement for the first year of operations. The income statement is for the fiscal year ended May 31, 2015:

Sales (16,000 units) $320,000

Cost of Goods Sold 216,000

Gross Margin 104,000

Selling and administrative expenses 46,000

Operating income $58,000

Additional data follow:

Variable selling and administrative expenses $1.50 per unit

Variable manufacturing costs $11.00 per unit

Direct materials inventory, May 31, 2015 0

Work-i n-process inventory, May 31, 2015 0

Units produced 17,500 units

Units expected to be produced 17,500 units

Required:

Assume actual fixed costs were equal to budgeted fixed costs. Prepare a variable-costing income statement for the year ended May 31, 2015.