Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $140 per unit.

Direct materials	$ 60	per unit
Direct labor	$ 22	per unit
Variable overhead	$ 8	per unit
Fixed overhead	$ 504,000	per year
Variable selling and administrative expenses	$ 12	per unit
Fixed selling and administrative expenses	$ 100,000	per year

2a. Assume the company uses variable costing. Determine its total product cost per unit. 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.