Required information

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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 $$110$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$42$ per unit

$$16$ per unit

$$5$ per unit

$$396,000$ per year

$$11$ per unit

$$100,000$ 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$,,$$$3,960,000$