Below is operating information of Weber Light Aircraft, a company that produces light recreational aircraft.

	Per Aircraft	Per Month
Selling price	$900,000
Direct materials	$250,000
Direct labor	$175,000
Variable manufacturing overhead	$15,000
Fixed manufacturing overhead		$200,000
Variable selling and administrative expense	$50,000
Fixed selling and administrative expense		$70,000

	January	February	March
Beginning inventory	0	0	2
Units produced	2	4	3
Units sold	2	2	5
Ending inventory	0	2	0

1. Assume that the company uses variable costing:

a. Compute the unit product cost. (5)

b. Prepare an income statement for January, February and March. (5)