IV. E Co manufactures a single product. Assume the following data for the year just completed: Fixed costs in total Selling & Administrative. $ 60,000 Production 82,500 Variable cost per unit. Selling & Administrative $5 . Production. $8- . There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold. Each unit sells for $35. Required: (25 pts.) . 1. What is the unit product cost using Absorption costing . 2. What is the unit product cost using Variable costing? -3. What is the company's operating income using variable costing? 4. What is the company's operating income using absorption costing? 5. Reconcile absorption and variable costing net operating incomes and explain why the two amounts differ. 6. Compute the break even point in dollar sales 7. Compute the break even point in unit sales 8. If the targeted net profit is $ 500,000, how many units must the company sell? 9. Compute the company's margin of Safety 10. Compute the degree of operating leverage (DOL) using total sales of 875,000 11. Use the DOL you computed in Question 10 to answer this question. If sales would increase by 10%, net operating income would increase by how much