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 44,000 units and sold 36,000 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 $484,000 $120,000 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. $ 4,680,000 COOL SKY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials $ Direct labor 400,400 Variable overhead costs 400,400 Fixed overhead costs (728,000) 72,800 1,404,000 Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs 324,000 120,000 444,000 Total selling and administrative expenses Net income (loss) 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. COOL SKY Variable Costing Income Statement Sales $ 4,680,000 Less: Variable costs Variable product costs Variable selling and administrative expenses Gross margin Less: Variable costs (Fixed selling and administrative costs Fixed overhead costs Net income (loss)