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 oparation Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. 3. Explain the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operating income