Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 23,600 units, and 3,800 units remain in ending finished goods inventory for May. Fixed overhead was $70,800. Variable selling and administration expenses were $48,000 and fixed selling and administrative expenses were $28,200.

Sales (19,800 units)	$ 495,000
Cost of goods sold	394,000
Gross profit	101,000
Selling and administrative expenses	76,200
Income	$ 24,800

Prepare an income statement using variable costing.