Kelly Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017 , the company incurred the following costs. Variable selling and administrative expenses $4.00 Fixed Costs per Year Fixed manufacturing overhead $290,000 Fixed selling and administrative expenses $237,300 Kelly Company sells fishing lures for $28. During 2017, the company sold 80,000 lures and produced 100,000 lures. Instructions (a) Assuming the company uses variable costing, calculate Kelly's manufacturing cost per unit for 2017. (b) Assuming the company uses absorption costing, calculate Kellys manufacturing cost per unit for 2017. (c) Prepare an absorption costing income statement for 2017