Baristas planned production for the year that just ended was 18,000 units. Actual production totaled 18,000 units, and the company sold 19,000 units of its manufacturing output at $12 per unit. The following costs were incurred:

Manufacturing costs: Direct material used	$ 99,000
Direct labor	86,000
Variable manufacturing overhead	40,000
Fixed manufacturing overhead	36,000
Selling and administrative:
Variable Selling and administrative	60,000
Fixed Selling and administrative	180,000
Finished-goods inventory, January 1	2000

Required:

A. Calculate the cost per unit produced using variable costing. (20 Marks) B. Calculate the cost per unit produced using absorption costing. (20 Marks) C. What would be the companys finished-goods inventory cost on December 31 under the variable-costing method? (20 Marks) D. Which costing methods, absorption or variable costing, would show a higher operating income for the year? By what amount. (20 Marks)