Compute Mason's net income for the current year ended December 31. Mason Corporation began operations at the beginning of the current year. One of the company's products, a refrigeration element, sells for $195 per unit. Information related to the current year's activities follows. Mason carries its finished-goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. There was no work in process at year-end. Required: 1. Determine the cost of the December 31 finished-goods inventory. 3. If next year's production decreases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on a. The direct-labor cost of $36 per unit? No change Increase Decrease b. The fixed manufacturing overhead cost of $600,000 ? No change Increase Decrease c. The fixed selling and administrative cost of $860,000 ? No change Increase Decrease d. The average unit cost of production? No change Increase Decrease