U Tollowing 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 $120 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative coats Variable selling and administrative cont per unit Fixed selling and administrative cont per year 5 $ 18 $ 6 $440,000 $ 11 $115,000 $ 4,320,000 COOL SKY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials $ 1,728,000 Direct labor 648,000 Variable overhead costs 216,000 Fixed overhead costs 360,000 2,952,000 1,368,000 Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Total selling and administrative expenses Net income (loss) 216,000 115,000 3,960,000 $ x 4,291,000 813,000 $