Sales (100,000 units) $1,000,000 Variable cost of goods sold: Variable cost of goods manufactured (120,000 units x $7 per unit) $840,000 Less ending inventory (20,000 units x $7 per unit) 140,000 Variable cost of goods sold 700,000 Manufacturing margin $300,000 Variable selling and administrative expenses 10,000 Contribution margin $290,000 Fixed costs: Fixed manufacturing costs $36,000 Fixed selling and administrative expenses 19,000 55,000 Income from operations $235,000 a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest do Tudor Manufacturing Co. Income Statement-Absorption Costing For the Month Ended June 30 Sales $ 1,000,000 Cost of goods sold: Cost of goods manufactured Less ending inventory Cost of goods sold Gross profit Selling and administrative expenses Income from operations