Exercise 19-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial under absorption costing for external reporting. For its first month of operations, 375 bikes were produced and 225 were sold; this left 150 bikes in ending inventory. The income statement information under variable costing follows reports, and it prepares the income statement Sales (225 x $1,600) Variable product cost (225 360,000 $62S) spenecn (225 95)10, 43 Variable selling and administrative expenses (225 $65) Contribution margin Pixed overhead cost Fixed selling and administrative expense Net income 14,625 204,750 56,250 75,000 $ 73,500 HAYEK BIKES Absorption Costing Income Statement Net income (loss)