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, 350 bikes were produced and 225 were sold; this left 125 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 x $1,725) Variable product cost (225 x $650) Variable selling and administrative expenses (225 x $65) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 388,125 146,250 14,625 227,250 59,500 90,000 $ 77,750 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Net income (loss) Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income units fixed overhead per unit