Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (20,000 units) $1,800,000 Production costs (26,000 units): Direct materials $865,800 Direct labor 416,000 Variable factory overhead 208,000 137,800 1,627,600 Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses $252,300 Fixed selling and administrative expenses 97,700 350,000 b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Sales $ 1,800,000 Variable cost of goods sold 1,489,800 + Fixed costs