Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $140 per unit.

Manufacturing costs
Direct materials per unit	$	60
Direct labor per unit	$	22
Variable overhead per unit	$	8
Fixed overhead for the year	$	480,000
Selling and administrative costs
Variable selling and administrative cost per unit	$	12
Fixed selling and administrative cost per year	$	105,000

1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.

COOL SKY Absorption Costing Income Statement 0 0 Net income (loss) S 867,000