Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 10,500 dolls, produced 230,000 dolls, and ended the year with 8,500 dolls. Each doll was sold for $22. The actual unit cost for Teardrops is given below: Direct material Direct labour $ 2.50 0.60 variable overhead 3.00 Fixed overhead Total unit cost 7.90 $14.00 The only selling expenses were a commission of $3 per unit sold and advertising amounting to $355,000. Administrative expenses, all fixed, equalled $275,000. There were no beginning and ending work-in-process inventories. Required: 1. Prepare an income statement. Discon Corporation Income Statement For the Year Ended December 31, XXXX Selling and administrative expenses: 2. Calculate the following per unit costs: (Round your answers to 2 decimal places.) a. Prime cost b. Conversion cost c. Variable cost