High Country, Incorporated, 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: 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) 37,000 32,000 $ 78 $ 4 $562,000 $14 $7 $2 $ 703,000 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. 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. Answer is not complete. Complete this question by entering your answers in the table below. Req 1A Req 18 Req 2A Req 28 Prepare a contribution format income statement for May. Assume that the company uses variable costing. High Country, Incorporated Variable Costing Income Statement Variable expenses: Variable cost of goods sold Variable selling expense $ 2,496,000 $ 736,000 128,000 Contribution margin Fixed expenses: Fixed manufacturing overhead 703,000 Fixed selling and administrative expense 562,000 Net operating income