Kylie Company has beginning inventory of 5,000 units. In 2016 Kylie company produced 17,000 units but planned to produce 23,880 units. Variable manufacturing overhead was $81 per unit. Fixed manufacturing costs were $2,985,000 and fixed marketing costs were $1,800,000. Variable marketing costs for $270 per unit sold. Kylie had 7,000 units left in ending inventory. Direct material and direct labor costs were $150 and $180 per unit, respectively. Kylie Company has a tax rate of 40%. All variances are written off of COGS, the allocation base is units produced, and current year's budgets per unit production cost is the same as prior year's per unit production cost. Required: Under a variable costing system, what is the selling price if net income is $0 and what is variable cost of goods sold? (6 points) a. b. Prepare the absorption income statement assuming the same selling price calculated in part 1. What are net income and cost of goods sold? (10 points)