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 45 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead 375, 000 Fixed selling and administrative expense 238 ,500 During the year, the company produced 31,250 units and sold 26,500 units. The selling price of the company's product is $94 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 0 wherever it is required.) Absorption Costing Income Statement Cost of goods sold: 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product costb. Prepare an income statement for the year. {Do not leave any empty spaces: input a O wherever it is required.) Variable expenses: Variable Goal of goods sold: Variable cost of goods sold