! Required information The following information applies to the questions displayed below. Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 54 20 S $440,000 11 $100,000 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. COOL SKY Variable Costing Income Statement Sales $ 4,160,000 Less: Variable costs Variable product costs Variable selling and administrative expenses 352,000 Total variable costs Contribution margin 352,000 Less: Fixed expenses Fixed selling and administrative costs Net income (loss)