Hayek Blkes prepares the Income statement under varlable costing for Its managerial reports, and it prepares the Income statement under abeorption costing for extemal reporting. For Its first month of operations, 375 blkes were produced and 225 were sold; thls left 150 blkes In ending Inventory. The Income statement Information under varlable costing follows. Sales (225 $1,658) Variable product cost (225 x $688) Variable selling and adninistrative expenses (225 $65) Contribution margin Fixed overhead cost Fixed selling and adninistrative expense Net income $ 371,258 135,800 14,625 221,625 71,258 85,868 $ 65,375 1. Prepare thls company's Income statement for Its first month of operations under absorption costing. (Round your Intermediate calculations to the nearest whole dollar.) K BIKES Costing Income Statement Less: Variable costs Variable product costs Variable selling and administrative expenses otal variable costs bution margin xed overhead costs ixed selling and administrative costs Net income (loss) t income under absorption costing is lower than net income under variable costing by Fixed costs added to inventory