Problem 6-20 Variable and Absorption Costing Unit Product Costs and Income Statements, Explan High Country, Inc. produces and sells many reareational produdts. The company has just opened a nevw plant to produoe a folding camp oot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per month Manufacturing costs Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month 37,000 32,000 S76 $3 S559,000 S16 $9 S1 $703,000 Management is anxious to see how profitable the new camp oot will be and has asked that an income statement be prepared for May Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost Unit product cost S45 b. Prspare an inoome statement for nMay High Country, Inc. Absorption Costing Income Statement 2,432,000 1.440,000 992 000 Sales Cost of poods sele Gross margin Selling and aomiristrative epeesBEE0 Net ocersting income 337.005