Please answer the following question

Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold; this left 125 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 x $1,775) $ 399,375 Variable product cost (225 x $675) 151,875 Variable selling and administrative expenses (225 x $65) 14,625 Contribution margin 232,875 Fixed overhead cost 52,500 Fixed selling and administrative expense 75,000 Net income $ 105,375 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Plus: Cost of goods sold Variable product costs Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs Fixed costs added to inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units x fixed overhead per unit. Required 1 Required 2 >