Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 20,400 units, and 2,200 units remain in ending finished goods inventory for May. Fixed overhead was $51,000. Variable selling and administration expenses were $32,000 and fixed selling and administrative expenses were $12,000.

Sales (18,200 units)	$ 455,000
Cost of goods sold	392,000
Gross profit	63,000
Selling and administrative expenses	44,000
Income	$ 19,000

Prepare an income statement using variable costing.