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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 $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	$	360,000
Selling and administrative costs
Variable selling and administrative cost per unit	$	10
Fixed selling and administrative cost per year	$	105,000

1a. Assume the company uses absorption costing. Determine its product cost per unit. Per unit product cost using: Absorption costing Cost per unit 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. COOL SKY Absorption Costing Income Statement Net income (loss) 2a. Assume the company uses variable costing. Determine its product cost per unit. Per unit product cost using: Variable costing Cost per unit 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. COOL SKY Variable Costing Income Statement Net income (loss)