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. Income statement information under variable costing follows. Sales (225 $1,750) $ 393,750 Variable cost of goods sold (225 $675) 151,875 Variable selling and administrative expenses (225 $60) 13,500 Contribution margin 228,375 Fixed overhead 52,500 Fixed selling and administrative expenses 85,000 Income $ 90,875

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. Income statement information under variable costing follows. Prepare the company's income statement under absorption costing