Exercise 6-3 (Algo) 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 42,000 units and sold 34.000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead fixed ovechead Variable selling and adelnistrative expenses Fixed sellingt and administrative expenses Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. 10. Assume the company uses absorption costing. Determine its total product cost per uni 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. 20. Assume the company uses variable costing. Determine its total product cost per unit. 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing