Required Information Exercise 6-3 (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 44,000 units and sold 36,000 units at a price of $130 per unit. Direct materials Direct labor variable overhead Fixed overhead variable selling and administrative expenses Fixed selling and administrative expenses $ 54 per unit $20 per unit $6 per unit $ 484,000 per year $10 per unit $ 120,000 per year Exercise 6-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Sales $ 4,680,000 Less: Variable expenses Variable cost of goods sold $ 216,000) Variable selling and administrative expenses 360,000 576,000 Contribution margin Less: Fixed expenses Fixed overhead 484,000 Fixed selling and administrative expenses 120,000 604,000) Income