Harris Corporation produces a single product. Last year, Harris manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows:

Fixed manufacturing overhead	$563,350
Variable manufacturing overhead	$243,130
Direct labor	$145,285
Direct materials	$222,375

Sales were $1,070,100, for the year, variable selling and administrative expenses were $140,220, and fixed selling and administrative expenses were $210,515. There was no beginning inventory. Assume that direct labor is a variable cost.

Under variable costing, the company's net operating income for the year would be:

$95,950 higher than under absorption costing

$95,950 lower than under absorption costing

$29,795 lower than under absorption costing

$29,795 higher than under absorption costing

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$126
Units in beginning inventory	0
Units produced	2,630
Units sold	2,500
Units in ending inventory	130
Variable costs per unit:
Direct materials	$49
Direct labor	$17
Variable manufacturing overhead	$8
Variable selling and administrative	$9
Fixed costs:
Fixed manufacturing overhead	$84,160
Fixed selling and administrative expenses	$17,500

The total gross margin for the month under absorption costing is:

$96,700

$50,000

$107,500

$10,000

Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $135 Units in beginning inventory 0 Units produced 6,750 Units sold 6,450 Units in ending inventory 300 Variable costs per unit: Direct materials $21 Direct labor $51 Variable manufacturing overhead $15 Variable selling and administrative $15 Fixed costs: Fixed manufacturing overhead $182,250 Fixed selling and administrative $26,700 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the unit product cost for the month under absorption costing?

$87 per unit

$114 per unit

$102 per unit

$129 per unit