Explanation of Difference In Net Operating Income $[$LO$6-1,$ LO$6-2,$ LO$6-3]$

High Country, Incorporated, produces and sells many recreational products. The company just opened a new plant to produce a

folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first mont

of the plant's operation:

Requlred:

Assume the company uses absorption costing.

a$.$ Calculate the camp cot$\text{'}$s unit product cost.

b$.$ Prepare an income statement for May.

Assume the company uses variable costing.

a$.$ Calculate the camp cot$\text{'}$s unit product cost.

b$.$ Prepare a contribution format income statement for May.

Complete this question by entering your answers in the table below.

Prepare a contribution format income statement for May. Assume the company uses variable costing.