Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 20,000 units, and 2,000 units remain in ending finished goods inventory for May. Fixed overhead was $50,000. Variable selling and administration expenses were $30,000 and fixed selling and administrative expenses were $10,000. Sales (18,000 units) Cost of goods sold Gross profit Selling and administrative expenses Income $ 360,000 300,000 60,000 40,000 $ 20,000 Prepare an income statement using variable costing. DION COMPANY Income Statement (Variable Costing) Trevor Company reports the variable costing income statement below for June. The company began the month with no finished goods inventory. It produced 10,000 units in June, and 2,000 units remain in ending finished goods inventory. Sales (8,000 units) Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expenses Income Prepare an income statement using absorption costing. TREVOR COMPANY Income Statement (Absorption Costing) $ 320,000 $225,000 35,000 260,000 60,000 8,000 12,000 20,000 $ 40,000