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	$	30
Direct labour		21
Variable manufacturing overhead		8
Variable selling and administrative		8
Fixed costs per year:
Fixed manufacturing overhead		424,200
Fixed selling and administrative expense		181,200

During the year, the company produced 35,350 units and sold 30,200 units. The selling price of the companys product is $89 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.

2.	Assume that the company uses variable costing.

a.	Compute the unit product cost.

b.	Prepare an income statement for the year.