Bharat Bicycle, located in India, produces an inexpensive yet rugged bicycle for use on crowded city streets. The company sells the bicycle for $500$ rupees. $($Indian currency is denominated in rupees, denoted by R$.)$ Selected data for the company's operations last year follow:

$\backslash$table$[[$Unts in beginning ivvertory $..................................],[$Units sold...........................,$8,000],[$Units in ending inventory..,$2,000],[\backslash$table$[[$Variable costs per unit:$],[$Direct materials......$]],],[\backslash$table$[[$Direct materials...........................................$],[$Direct labour......$]],\backslash$table$[[$R$120],[$P$140]]],[\backslash$table$[[$Direct labour................................$],[$Variable manufacturing overhead $.......]],\backslash$table$[[$R$140],[$R$50]]],[\backslash$table$[[$Variable manufacturng overnead $.........],[$Variable seling and administrative $.........]],$P$2$O$],[$Fxxed costs,$],[\backslash$table$[[$Fxed manufacturing overhead. $...................................................],[$Fxed selling and administrative......$]],\backslash$table$[[$R$600,000],[$R$400,000]]]]$

Required:

a$)$ Assume that the company uses absorption costing. Compute the unit product cost for one bicycle.

b$)$ Assume that the company uses variable costing. Compute the unit product cost for one bicycle.

c$)$ Prepare an income statement for the year using two costing method. Explain the difference in operating income between the two costing methods.