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Required information Exercise 1 9 - 3 ( Algo ) Income statement under absorption costing and variable costing LO P 1 , P 2 [

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Required information
Exercise 19-3(Algo) Income statement under absorption costing and variable costing LO P1, P2
[The following information applies to the questions displayed below.]
Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $140 per unit.
Direct materials
Direct labor
Variable overhead
$60 per unit
Fixed overhead
$22 per unit
Variable selling and administrative expenses
$8 per unit
Fixed selling and administrative expenses
$480,000 per year
$10 per unit
$105,000 per year
Exercise 19-3(Algo) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
\table[[Income Statement (Variable Costing)],[,,],[,,],[,,],[,,],[,,]]
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