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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 44,000 units and sold 36,000 units at a price of $140 per unit. Direct materials $ 60 per unit Direct labor $ 22 per unit Variable overhead $ 8 per unit Fixed overhead $ 528,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 105,000 per year 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing Answer is complete but not entirely correct. Income Statement (Absorption Costing) Sales $ 5,040,000 Cost of goods sold 3,672,000 Gross profit 1,368,000 Selling and administrative expenses 291,000 Income $ 1.077.000