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:

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.