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 46,000 units and sold 38,000 units at a price of $110 per unit. Manufacturing costs Direct materials per unit $ 42 Direct labor per unit $ 16 Variable overhead per unit $ 5 Fixed overhead for the year $414,000 Selling and administrative costs Variable selling and administrative cost per unit $ 10 Fixed selling and administrative cost per year $115,000 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing COOL SKY Absorption Costing Income Statement Sales $ 4,180,000 Less: Variable costs Variable overhead costs $ 1,444,000 Variable selling and administrative expenses Gross margin 1,444,000 1,444,000 Fixed selling and administrative costs 495,000 Total selling and administrative expenses Not income (loss) 495,000 $ 2,241,000