Required information [The following information applies to the questions displayed below.] of 4 Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $120 per unit. Direct materials $ 48 per unit Direct labor $ 18 per unit Variable overhead $ 6 per unit Fixed overhead $ 400,000 per year Variable selling and administrative expenses $ 9 per unit Fixed selling and administrative expenses $ 100,000 per year 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing & Answer is complete but not entirely correct. Income Statement (Variable Costing) Sales $ 3,840,000 Less: Variable expenses Variable cost of goods sold 288,000 X Variable selling and administrative expenses 288,000 656,000 x 1,232,000 Contribution margin 2,608,000 X Less: Fixed expenses O Fixed overhead costs O 400,000 Fixed selling and administrative costs 100,000 500,000 Income 732,000 X