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. b. Prepare an income statement for the year. Absorption Costing Income Statement Sales Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale 0 0 0 Less: Ending inventory Gross margin Selling and administrative expenses Operating income $ 0 2. Assume that the company uses variable costing. a. Compute the unit product cost. Unit product cost $ 60 b. Prepare an income statement for the year. 0 0 Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold: Beginning inventory Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold Selling and administrative expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative Prepaid expenses Operating income 0 0 0 0 0