Donald Trump 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 below:

variable selling and administrative expenses $1.50 per unit

variable manufacturing costs $11.00 per unit

direct materials inventory, May 31, 2015 0

work-in-process inventory, May 31, 2015 0

units produced 17,500 units

units expected to be produced 17,500 units

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