Momentum Bikes manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory):

Variable production costs $90 per bike

Fixed production costs $450,000

Variable selling & administrative costs $22 per bike

Fixed selling & administrative costs $500,000

Selling price $200 per bike

Production 20,000 bikes

Sales 17,000 bikes

Instructions

Prepare a brief income statement using variable costing.

a. Income Statement variable costing.