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Required information

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Cool Sky reports the following for its first year of operations. The company produced $42,000$ units and sold $34,000$ units at a price of $$140$ per unit.

Direct materials

Direct labor

variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$60$ per unit

$$22$ per unit

$$8$ per unit

$$504,000$ per year

$$11$ per unit

$$120,000$ per year

$2$b$.$ Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

$\backslash$table$[[$Income Statement $($Variable Costing$),],[$Sales$,,],[$Less: Variable expenses,,$],[$Variable cost of goods sold,,$],[$Variable selling and administrative expenses,,$],[,,],[$Contribution margin,,$],[$Less: Fixed expenses,$504,000,],[$Fixed overhead,$120,000,],[$Fixed selling and administrative expenses,,$],[,,624,000],[$Income$,,]]$