Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32.000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $60 per unit $ 22 per unit $8 per unit $ 480,000 per year $12 per unit $ 115,000 per year 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing) Sales S 4.480,000 Cost of goods sold Gross profit 3,264,000 1,216,000 Selling and administrative expenses $ Income 1,216,000