ABC manufacturing company produces a single product and has provided the following data concerning its most recent month of operations: Total sales $215,000 Variable costs per unit Direct materials $25 Direct labour 30 Manufacturing overhead 5 Selling and administration 6 Fixed costs (total) Manufacturing overhead 6,000 Selling and administration 8,000 Units in beginning inventory 0 units Sales 1,400 units Units in ending inventory 200 units Required - a) Calculate the per unit cost under variable and absorption costing. b) Prepare a statement of income for the month using absorption costing. Show all of your work. c) Without calculations, would the income be higher or lower under variable costing? Explain why