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; this left 110 bikes in ending inventory. The income statement information under variable costing follows. Sales (215 * $1,750) Variable product cost (215 x $675) Variable selling and administrative expenses (215 * $55) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 376,250 145,125 11,825 219,300 58,500 90,000 $ 70, 800 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Net income (loss)