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 $130 per unit.

Direct materials

$ 54

per unit

Direct labor

$ 20

per unit

Variable overhead

$ 6

per unit

Fixed overhead

$ 462,000

per year

Variable selling and administrative expenses

$ 10

per unit

Fixed selling and administrative expenses

$ 105,000

per year

2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

Required information [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a nrire of $130 Der unit. 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing