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 $1,750)	$	393,750
Variable product cost (225 $625)		140,625
Variable selling and administrative expenses (225 $65)		14,625
Contribution margin		238,500
Fixed overhead cost		52,500
Fixed selling and administrative expense		90,000
Net income	$	96,000

1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: