Problem 7-20 Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income (L07-1, LO7-2, LO7-3) 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: 37,000 32,000 Beginning inventory Units produced Units Bold 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 coat per unit Fixed manufacturing overhead coat (per month) 560.000 References $ 555,000 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 Complete this question by entering your answers in the table below. Reg LA Reg 18 Red 2A Reg 20 Prepare a contribution format income statement for May. Assume that the company uses variable costing. High Country, Inc. Variable Costing Income Statement High Country, Inc. Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling expenses o Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income