On February 28, the end of the first month of operations, Kibitz Computer Technology prepared the following income statement, based on the variable costing concept:

Kibitz Computer Technology
Variable Costing Income Statement
For the Month Ended February 28
Sales (250,000 units)			$ 67,000,000
Variable cost of goods sold:
Variable cost of goods manufactured		$ 46,000,000
Inventory, February 28		$ (5,500,000)
Total variable cost of goods sold			$ 40,500,000
Manufacturing margin			$ 26,500,000
Total variable selling and admin. expenses			$ 2,400,000
Contribution margin			$ 24,100,000
Fixed Costs
Fixed manufacturing costs		$ 8,500,000
Fixed selling and admin. Expenses		$ 375,000
Total fixed costs			$ 8,875,000
Income from operations			$ 15,225,000

1. Prepare an income statement under absorption costing.