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 $1,775) Variable cost of goods sold (215 $650) Variable selling and administrative expenses (215 $55) Contribution margin Fixed overhead Fixed selling and administrative expenses Income $ 381,625 139,750 11,825 230,050 61,750 90,000 $ 78,300 Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) Sales $ 381,625 Cost of goods sold Gross profit 381,625 Selling and administrative expenses Income $ 381,625