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Exercise 19-10(Algo) Absorption costing income statement LO P2 Hayek Bikes prepares the income...

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Accounting

Exercise 19-10(Algo) Absorption costing income statement LO P2
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, 325 bikes were produced and 215 were sold. Income statement information under variable costing follows.
Sales (215$1,725)
Variable cost of goods sold (215$625)
Variable selling and administrative expenses (215$70)
Contribution margin
Fixed overhead
Fixed selling and administrative expenses
Income
\table[[],[$370,875
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