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, 400 bikes were produced and 240 were sold; this left 160 bikes in ending inventory. The income statement information under variable costing follows

Sales (240 $1,625)	$	390,000
Variable production cost (240 $675)		162,000
Variable selling and administrative expenses (240 $55)		13,200
Contribution margin		214,800
Fixed overhead cost		68,000
Fixed selling and administrative expense		85,000
Net income	$	61,800

1.	Prepare this company's income statement for its first month of operations under absorption costing.(Round your intermediate calculations to the nearest whole dollar.)

HAYEK BIKES Absorption Costing Income Statement Sales Less: Cost of goods sold Variable overhead costs Variable selling and administrative expenses Net income (loss) Fixed costs added to inventory