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 29 2267 237,150 154,000 During the year, the company produced 26,350 units and sold 22,000 units. The selling price of the company's product is $84 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost $ 63 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 $ 1,848,000 Cost of goods sold: Beginning inventory $ 0 Add: Cost of goods manufactured 1,501,950 X Goods available for sale 1,501,950 Less: Ending inventory 247,950 x 1,254,000 Gross margin 594,000 Selling and administrative expenses 338,450 x Operating income $ 255,550 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product cost $ 57 b. Prepare an income statement for the year. (Do not leave any empty spaces; input a O wherever it is required.) Sales Variable Costing Income Statement Variable expenses: Variable cost of goods sold: Beginning inventory $ 0 Add: Variable manufacturing costs 1,501,950 $ 1,848,000 Goods available for sale Less: Ending inventory 1,501,950 247,950 Variable cost of goods sold 1,254,000 Selling and administrative expenses 154,000 1,408,000 Contribution margin 440,000 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Operating income 237,150 154,000 391,150 48,850