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High Country, Inc., produces and sells many recreationalproducts. The company has just opened a new plant to produce afolding camp cot that will be marketed throughout the UnitedStates. The following cost and revenue data relate to May, thefirst month of the plant’s operation: Beginninginventory0 Units produced48,000 Units sold43,000 Selling price perunit$84 Selling andadministrative expenses: Variableper unit$2 Fixedper month$566,000 Manufacturingcosts: Directmaterials cost per unit$16 Directlabor cost per unit$10 Variablemanufacturing overhead cost per unit$3 Fixedmanufacturing overhead cost per month$864,000 Management is anxious to see howprofitable the new camp cot will be and has asked that an incomestatement be prepared for May. Required:1.Assume that the company usesabsorption costing. a.Determine the unit productcost. b.Prepare an income statement for May. 2.Assume that the company usesvariable costing. a.Determine the unit productcost. b.Prepare a contribution format income statement for May.