Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 21,800 units, and 2,900 units remain in ending finished goods inventory for May. Fixed overhead was $43,600. Variable selling and administration expenses were $39,000 and fixed selling and administrative expenses were $19,400.

Sales (18,900 units) $ 378,000

Cost of goods sold 294,000

Gross profit 84,000

Selling and administrative expenses 58,400

Income $ 25,600

Prepare an income statement using variable costing.