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	$	22
Direct labour		7
Variable manufacturing overhead		6
Variable selling and administrative		9
Fixed costs per year:
Fixed manufacturing overhead		318,150
Fixed selling and administrative expense		201,600

During the year, the company produced 35,350 units and sold 28,800 units. The selling price of the company's product is $65 per unit.

Required:

1. Assume that the company uses absorption costing.

a. Compute the unit product cost.

b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)

2. Assume that the company uses variable costing.

a. Compute the unit product cost.

b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)