1 Required information [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $110 per unit. Direct materials Direct labor $42 per unit Variable overhead $16 per unit Fixed overhead $5 per unit Variable selling and administrative expenses $414,000 per year Fixed selling and administrative expenses \$11 per unit $105,000 per year 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. \begin{tabular}{|l|l|} \hline Income Statement (Absorption Costing) \\ \hline & \\ \hline \end{tabular}