Instruction On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: 1 Sales (2,600 units) 2 Cost of goods sold: 3 Cost of goods manufactured Morristown & Co. Absorption Costing Income Statement For Month Ended October 31, 20-- 4 Less ending inventory (400 units) 5 Cost of goods sold 6 Gross profit 7 Selling and administrative expenses 8 Income from operations $85,500.00 11,400.00 $117,000.00 74,100.00 $42,900.00 21,500.00 $21,400.00 If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign.