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 46,000 units and sold 38,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 19-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Sales Less: Variable expenses Variable cost of goods sold Fixed selling and administrative expenses Contribution margin Less: Fixed expenses Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses Income $ 48 per unit $ 18 per unit $ 6 per unit $ 460,000 per year $10 per unit $ 110,000 per year

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 46,000 units and sold 38,000 units at a price of $120 per unit. Direct materials oirect labor Varlable overtiead Flixed overhead Varfable selling and idrinistrative expenses Fixed selling and adninistrative expenses Exercise 19-3 (Algo) Part 2b 2b. Assume the company uses variable costing Prepare its income statement for the year under variable costing