On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Hide 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. Morristown & Co. Variable Costing Income Statement For Month Ended October 31, 20-- Sales $ 117000 Variable cost of goods sold: Variable cost of goods manufactured $ 42600 Less ending inventory 21500 Variable cost of goods sold 45800 Manufacturing margin $ 21500 Variable selling and administrative expenses 14600 Contribution margin $ 21500 Mixed costs: Fixed manufacturing costs $ 42900 Fixed selling and administrative expenses 6900 49800 Income from operations $ 21400