40) Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below:

Year 1 Year 2

Sales$ 40,000$120,000

Variable cost of goods sold$22,000$66,000

Variable selling and administration80022,8002,40068,400

Contribution margin17,20051,600

Fixed overhead30,00030,000

Fixed selling and administration15,00045,00015,00045,000

Operating income$(27,800)$6,600

The product cost per unit during year 1 using absorption would be:

a) $67,000

b) $73,000

c) $82,000

d) $85,000

whats the product cost and operating income for year 1 and 2 with absorption costing