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 40,000 units and sold 32,000 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 Exercise 6-3 (Algo) Part 1a 16. Assume the company uses absorption costing. Determine its total product cost per unit Per unit product cost using: Absorption costing $ 60 per unit $ 22 per unit $8 per unit $ 480,000 per year $12 per unit $ 120,000 per year Direct labor Direct materials Fixed overhead Variable overhead.