During Year 1, a company produced 10,000 units. The details associated with operations are shown in the table below:

	Per Unit	Per Year
Sales Price	$250
Direct Materials	$70
Direct Labor	$50
Variable manufacturing overhead	$10
Fixed manufacturing overhead		$450,000

a) What is the product cost per unit under absorption costing?

b) What would the company report as net operating income under absorption costing if 7,500 units are sold?

c) What is the product cost per unit under variable costing?

d) What would the company report as net operating income under variable costing if 7,500 units are sold?