Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operations are shown below:

Beginning inventory		0	units
Units produced		10,000
Units sold		8,700
Manufacturing costs
Fixed overhead		$90,000
Variable overhead		$7	per unit
Direct labour		$10	per unit
Direct material		$28	per unit
Selling and administrative costs
Fixed		$204,200
Variable		$4	per unit sold

The portable cooking unit sells for $112. Management is interested in the opening months results and has asked for an income statement.

(a) Prepare a variable-costing income statement for the first month of operation.