Required information [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...

Required information [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 Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 548 per unit $18 per unit 56 per unit $ 400,000 per year 5 10 per unit 5 100,000 per year 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. $ 3,840,000 Income Statement (Absorption Conting) Sales Cost of goods sold Gross profit Selling and administrative expenses Income 3.840,000 $ 3.840,000 (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 56 per unit Fixed overhead $ 400,000 per year Variable selling and administrative expenses $10 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 Income Statement (Variable Costing) Sales Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income