On July 31, 2016, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $132,000 and the variable selling and administrative expenses were $115,200. Answer Check Figure: Contribution margin, $1,934,400 Reconcile the absorption costing income from operations of $1,656,000 with the variable costing income from operations determined in (a). Appendix EX 19-28 Absorption costing income statement On June 30, 2016, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Prepare an absorption costing income statement. Answer Check Figure: Gross profit, $1,435,600 Reconcile the variable costing income from operations of $1,255,000 with the absorption costing income from operations determined in (a).