Problem 7-20 Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income (L07-1, L07-2, L07-3] High Country, Inc. produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cat 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: OK ces 38.000 33,000 80 Deging inventory Units produced Un mold Selling price petit Selling and administrative expenses Variable per uns Fixed per month Manteaturing consi DITECE certa cost per un Direct laborat per un Variable Seturing overheat DULE Fixed anotaturing overhead (per mot 560.000 . . 16 572,000 Management is anxious to assess the profitability of the new camp cot during the month of May Required: 1. Assume that the company uses absorption costing a. Determine the unit product cost b. Prepare an income statement for May 2 Assume that the company uses variable costing a. Determine the unit product cost b. Prepare a contribution format income statement for May rences ome statement for May Complete this question by entering your answers in the table below. Reg 1A Reg 10 RG2A Reg 20 Determine the unit product cost. Assume that the company se absorption costing Unit product cat KA Reg 18 ) Reg 1A Req 1B Req 2A Reg 2B Prepare an income statement for May. Assume that the company uses absorptio High Country, Inc. Absorption Costing Income Statement