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Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares...

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 × $1,750) $ 393,750
Variable product cost (225 × $625) 140,625
Variable selling and administrative expenses (225 × $55) 12,375
Contribution margin 240,750
Fixed overhead cost 56,250
Fixed selling and administrative expense 85,000
Net income $ 99,500


1. Prepare this company's income statement for its first month of operations under absorption costing.
2. Fill in the blanks:

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