In the current year, TGIT Corp. produced 10,000 units and sold 8,000 of the units. The company incurred the following costs:

Direct materials used		$120,000
Direct labour cost		68,000
Variable manufacturing overhead		40,000
Fixed manufacturing overhead		60,000
Fixed selling and admin. expense		45,000
Variable selling and admin. expense		36,000

There was no beginning finished goods inventory and no beginning or ending work-in-process inventory.

Use the information provided to answer the following questions: show your work.

d) If you were told that TGIT produced 10,000 units and sold 9,000 units, what is the product cost per unit?

Under variable costing?

Under absorption costing?

e) Would net income be higher for the year under absorption costing or under variable costing?

And by what amount?