Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: 69 25 12 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 200,000 110,000 During the year, the company produced 25,000 units and sold 21,000 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. Unit product cost $ 8 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 Sales Cost of goods sold: $ 1,365,000 0 Less: Ending inventory Gross margin Selling and administrative expenses Operating income 1,365,000 215,000 $1,150,000 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product cost $ 40 b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold: $ 1,365,000 0 Variable cost of goods sold 0 0 1,365,000 Fixed expenses: 0 1,365,000