Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $130 per unit. Direct materials Direct labor Variable overhead $ 54 per unit $20 per unit $6 per unit $ 484,000 per year. $ 12 per unit $ 110,000 per year Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) S 4,680,000 Sales Less: Variable expenses 2.880,000 Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income $ 2.880,000