On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 27,800 units and sold 26,400 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 2016 $10,560,000.00 1 Sales 2 Variable cost of goods sold: 3 Variable cost of goods manufactured 4Less ending inventory $5,838,000.00 294,000.00 Variable cost of goods sold 5,544,000.00 5,016,000.00 1,150,000.00 $3,866,000.00 6 Manufacturing margin 7Variable selling and administrative expenses 8 Contribution margin 9 Fixed costs: 10 Fixed manufacturing costs 11 Fixed selling and administrative expenses 12 Income from operations $1,807,000.00 90,000.002,697,000.00 $1,169,000.00