[The following information applies to the questions displayed below.] 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	$ 105,000	per year

2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

[The following information applies to the questions displayed below.] 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. b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing