Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (125,000 units) during the first month, creating an ending inventory of 15,000 units. During February, the company produced 110,000 units during the month but sold 125,000 units at $570 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Units Cost Cost Manufacturing costs in February 1 beginning inventory: Variable Fixed 15,000 15,000 $285.00 37.00 $4,275,000 555,000 Total Manufacturing costs in February: Variable Fixed Total Selling and administrative expenses in February: Variable Fixed Total $322.00 $4,830,000 110,000 $285.00 $31,350,000 110,000 42.70 4,697,000 $327.70 $36,047,000 125,000 125,000 4.00 28.50 $3,562,500 500,000 32.50 $4,062,500 Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Sales Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Operating income b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income