2. Company XYZ has the following costs and activities associated with the production and sale of one of its products: Direct material $3.00/unit Fixed OH (total) Direct labor $2.50/unit Fixed expenses (total) Var. OH $1.80/unit Production Var expenses $0.25 / unit Sales Selling price $25 / unit Management estimates the annual capacity to be 50,000. Prepare the income statement based on absorption costing. $200,000 $75,000 55,000 units 48,000 units (3 points)