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 $130 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 54 per unit $ 20 per unit $ 6 per unit $440,000 per year $11 per unit $110,000 per year 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption c Income Statement (Absorption Costing) Gross profit Income Loss Sales Selling and administrative expenses