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: 44,000 39,000 76 A Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) tot 000 A GA GA GA 15 7 1 $ 836,000 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. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May. Req 1A Reg 1B Reg 2A Req 2B Prepare a contribution format income statement for May. Assume that the company uses variable costing. $ 2,964,000 High Country, Inc. Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold $ 897,000 Variable selling expenses 117,000 1,014,000 1,950,000 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income $ 1,950,000