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[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 $120 per unit.

Direct materials	$ 48	per unit
Direct labor	$ 18	per unit
Variable overhead	$ 6	per unit
Fixed overhead	$ 400,000	per year
Variable selling and administrative expenses	$ 10	per unit
Fixed selling and administrative expenses	$ 110,000	per year

1a. Assume the company uses absorption costing. Determine its total product cost per unit. 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.