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, 375 bikes were produced and 225 were sold; this left 150 bikes in ending inventory. the income statement information under variable costing follows. sales (225 × $1,600) $ 360,000 variable product cost (225 × $625) 140,625 variable selling and administrative expenses (225 × $65) 14,625 contribution margin 204,750 fixed overhead cost 56,250 fixed selling and administrative expense 75,000 net income $ 73,500 1. prepare this company's income statement for its first month of operations under absorption costing.