Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ 32 22 6 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 6 375,000 157,200 During the year, the company produced 31,250 units and sold 26,200 units. The selling price of the company's product is $88 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. Absorption Costing Income Statement Cost of goods sold: 2. Assume that the company uses variable costing. a. Compute the unit product cost. 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. Variable Costing Income Statement Variable expenses: Variable cost of goods sold: Variable cost of goods sold Fixed expenses