Problem 7-20 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income [LO7-1, LO7-2, LO7-3] 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 profitabllity of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Caiculate 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. Complete this question by entering your answers in the table below. Complete this question by entering your answers in the table below. Prepare an income statement for May. Assume that the company uses absorption costing. Prepare a contribution format income statement for May. Assume that the company uses variable costing. Complete this question by entering your answers in the table below. Determine the unit product cost. Assume that the company uses variable costing