In the coming year, Planet Company expects to sell 74,600 units at $30 each. Planet's controller provided the following information for the coming year.

Required:
1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. Calculate operating income under absorption costing for next year.
4. Calculate operating income under variable costing for next year

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Unit production Unit direct materials 80,000 $7.50 Unit direct labour $2.75 Unit variable overhead $3.90 $4.50 Unit fixed overhead* Unit selling expense (variable) Total fixed selling expense Total fixed administrative expense * The unit fixed overhead is based on 80,000 units produced. $2.00 $56,500 $213,000