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On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:

Morristown & Co.
Absorption Costing Income Statement
For the Month Ended October 31
Sales (2,600 units)				$117,000
Cost of goods sold:
Cost of goods manufactured		$85,500
Ending inventory (400 units)		(11,400)
Total cost of goods sold				(74,100)
Gross profit				$42,900
Selling and administrative expenses				(21,500)
Operating income				$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.

Ending inventory Fixed manufacturing costs Sales Variable cost of goods manufactured Wages expense		$- Select -
Variable cost of goods sold:
Fixed selling and administrative expenses Sales Variable cost of goods manufactured Variable cost of goods sold Wages expense	$- Select -
Ending inventory Fixed selling and administrative expenses Sales Utilities expense Variable cost of goods sold	- Select -
Ending inventory Fixed manufacturing costs Total variable cost of goods sold Utilities expense Variable cost of goods manufactured		- Select -
Ending inventory Fixed manufacturing costs Manufacturing margin Utilities expense Variable cost of goods manufactured		$- Select -
Ending inventory, Fixed manufacturing costs, Variable cost of goods manufactured Variable selling and administrative expenses Wages expense		- Select -
Contribution margin,Ending inventory Fixed manufacturing costs, Variable cost of goods manufactured Wages expense		$- Select -
Fixed costs:
Ending inventory Fixed manufacturing costs, Sales Variable cost of goods sold, Wages expense	$- Select -
Ending inventory, Fixed selling and administrative expenses Sales Utilities expense Variable cost of goods sold	- Select -	- Select -
Operating income		$fill in the blank 20