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) $104,000

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 $ 29,900

Selling and administrative expenises $21,500

Income from operations $ 8,400

If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement in accordance with the variable costing concept.