Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at $500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Units Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $275.00 $5,500,000 Fixed 20,000 26.00 520,000 Total Manufacturing costs in February: $301.00 $6,020,000 Variable Fixed Total 130,000 $275.00 130,000 30.00 $35,750,000 3,900,000 $305.00 $39,650,000 Selling and administrative expenses in February: Variable Fixed 150,000 150,000 $20.00 1.30 $3,000,000 195,000 Total $21.30 $3,195,000 a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc.