Variable Costing income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absarption costing concept: a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $60,000 and the variable selling and administrative expenses were $43,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Rhys Company Income Statement-Variable Costing For the Month Ended July 31 Sales Variable cost of goods sold: Variable cost of goods manufactured Less ending inventory Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Income from operations b. Reconcile the absorption costing income from operations of $266,000 with the variable costing income from operations determined in (a). Reconciliation of Absorption and Variable Costing Income