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 (133,000 units) during the first month, creating an ending inventory of 16,000 units. During February, the company produced 117,000 units during the month but sold 133,000 units at $530 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Units Total Cost Cost Manufacturing costs in February 1 beginning inventory: Variable Fixed 16,000 $265.00 $4,240,000 16,000 39.00 624,000 Total Manufacturing costs in February: Variable Fixed Total Selling and administrative expenses in February: Variable Fixed Total $304.00 $4,864,000 117,000 $265.00 $31,005,000 117,000 45.00 5,265,000 $310.00 $36,270,000 133,000 30.00 $3,990,000 133,000 5.00 665,000 35.00 $4,655,000