Hayek Bikes prepares the Income statement under variable costing for its managerial reports, and it prepares the Income statement under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold. Income statement Information under variable costing follows. Sales (215 * $1,725) $ 370,875 Variable cost of goods sold (215 * $650) 139,750 Variable selling and administrative expenses (215 * $55) Contribution margin 219,300 Fixed overhead 58,500 Fixed selling and administrative expenses Income $ 85,800 11,825 75, see Prepare the company's Income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) 0 s 0