On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown & Co. Income Statement For Month Ended October 31, 20- Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $85,500 Less ending inventory (400 units) 11,400 Cost of goods sold 74,100 Gross profit 42,900 Selling and administrative expenses 21,500 Income from operations $21,400 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.