Betty Harris, CEO of Cullumber Industries, is concerned about the recent volatility in the companys operating income. She believes that since the number of units sold has been fairly stable over the past three years that operating income also should have been stable. Betty asked Mark Martin, Cullumber's inventory manager, to help her understand the issue. Mark reviewed the companys records and compiled the following changes to Finished Goods Inventory (in units) for the years 2019, 2020, and 2021.

		Year
		2019			2020			2021
Beginning inventory		1,000			2,000			500
Production		40,000			38,000			40,000
Sales		(39,000)			(39,500)			(39,500)
Ending inventory		2,000			500			1,000

Mark also gathered the 2019 income statements prepared using absorption costing and variable costing, which follow.

Income StatementAbsorption Costing
Sales		$	4,875,000
Cost of goods sold
Units in beginning inventory			(92,000)
Units sold from current year production			(3,496,000)
Total cost of goods sold			(3,588,000)
Gross margin			1,287,000
Selling expense			(615,000)
Operating Income		$	672,000
Income StatementVariable Costing
Sales		$	4,875,000
Variable production expenses			(2,106,000)
Variable selling expenses			(312,000)
Contribution margin			2,457,000
Fixed manufacturing expenses			(1,520,000)
Fixed selling expenses			(303,000)
Operating income		$	634,000

(a)

Compute the unit product cost for 2019, 2020, and 2021 for variable and absorption costing. Assume that variable costs per unit and total fixed costs do not change from one year to the next. (Round answers to 2 decimal places, e.g. 15.25.)

		2019		2020		2021
Unit product cost using variable costing
Unit product cost using absorption costing