If Tinker sells 95,000 of the toys it produced in August for a selling price of $10 per toy, prepare an absorption costing income statement for Tinker forthe month ending August 31, 2011. Assume there is no beginning inventory. Tinker toys Income statement (Absorption Costing) For month ending August 31, 2011 Sales Revenue (95,000 x $10) Cost of goods sold: Variable expenses (95,000 x $5) Fixed ($200,000/100,000) x 95,000 Gross profit Fixed selling & admin expenses Variable selling & admin expenses Operating income 100,000 0 100,000