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 Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense 28 16 7 8 489,750 216,800 During the year, the company produced 32,650 units and sold 27,100 units. The selling price of the company's product is $89 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces; input a O wherever it is required.) Absorption Costing Income Statement Sales 20 Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory. Gross margin Selling and administrative expenses Operating income 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product cost 0 0 0 $ 0 Compute the unit product cost Un product c b. Prepare an income statement for the year. (Do not leave any empty spaces; input a O wherever it is required.) Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Beginning inventory Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold Variable soling expense Contribution margin Fixed expenses Faxed manufacturing overhead 0 0 0 0