2 Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 32 Direct labour 22 Variable manufacturing overhead 6 Variable selling and administrative 6 Fixed costs per year: Fixed manufacturing overhead 375,000 Fixed selling and administrative expense 157,200 During the year, the company produced 31,250 units and sold 26,200 units. The selling price ofthe company's product is $88 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Assume that the company uses variable costing. 3. Compute the unit product cost. 5:40 b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Variable Costing Income Statement Variable expenses: Variable cost of goods sold: 0 Variable cost of goods sold 0 O O Fixed expenses: O 0