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:Units produced

Units sold $43,000$

Selling price per unit $$77$

Selling and administrative expenses:Fixed $($per month$)$ $ $556,000$

Manufacturing costs:Direct labor cost per unit $ $6$Fixed manufacturing overhead cost $($per month$)$ $$768,000$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.