High Country, Inc., produces and sells many recreational products. The company has 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 month of the

plant's operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

Assume that the company uses absorption costing.

a$.$ Calculate the unit product cost.

b$.$ Prepare an income statement for May.

Assume that the company uses variable costing.

a$.$ Calculate the unit product cost.

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