Baxtell Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 26 Direct labour 12 Variable manufacturing overhead 3 Variable selling and administrative 10 Fixed costs per year: Fixed manufacturing overhead 276,300 Fixed selling and administrative expense 133,000 During the year, the company produced 30,700 units and sold 26,600 units. The selling price of the companys product is $70 per unit. Required: 1. Assume that the company uses absorption costing. a