#6

Required information Exercise 6-3 (Static) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.) Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000. units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 528,000 per year $ 11 per unit $ 105,000 per year 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing Income Statement (Variable Costing) Income Contribution margin Gross profit Income Loss Sales