ropter o Homework Help Save 6 Problem 6-20 Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income [L06-1, LO6-2, L06-3 42 ints High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot 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: eBook Print References Beginning inventory Units produced Units sold Selling price per unit 40,000 35,000 84 Se11ing and administrative expenses Variable per Pixed (per month) 559,000 Manufacturing coats Direct materials cost per unit 14 Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) 720,000 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