Required information [The following information applies to the questions displayed below.] 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 $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 $ 528,000 per year $11 per unit $ 105,000 per year 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Sales $ 5,040,000 Less: Variable expenses Variable cost of goods sold $ 3,240,000 Variable selling and administrative expenses 396,000 3,636,000 Contribution margin 1,368,000 Less: Fixed expenses Fixed overhead 528,000 Fixed selling and administrative expenses 105,000 633,000 Income