Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit $ 54 Direct labor per unit $ 20 Variable overhead per unit $ 6 Fixed overhead for the year $ 462,000 Selling and administrative costs Variable selling and administrative cost per unit $ 10 Fixed selling and administrative cost per year $ 110,000.

2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.