Christmas Company sells its product for $80 per unit. Variable product cost is $45 per unit, and fixed product cost is $120,000. Variable period cost is $5 per unit, and fixed period cost is $20,000, During 2021, the company produced 6,000 units and sold 5,000 units.

a) Calculate income under variable costing.

b)Calculate income under absorption costing. c) If a customer submits a special order for 400 units at a price of $60 per unit, should the company accept the order?

d) If the company's ending inventory is destroyed by earthquake, which costing method will the company want to use when filing an insurance claim?

e)Calculate the value of ending inventory under the two costing methods.