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Majestic Industries has one product. Information about the production and sales of that product for the past year follow. (Click the Icon to view the data.) The company had no beginning inventory. Read the requirements. Less: Operating expenses Operating income $ 91,000 -X X Data Table Now prepare the income statement for the year using variable costing. Majestic Industries Contribution Margin Income Statement (Variable Costing) For the Year Ended Sales revenue $ 728,000 Less: Variable expenses Variable cost of goods sold 434,000 98,000 Variable operating expenses Contribution margin $ 198,000 Less: Fixed expenses Fixed manufacturing overhead 72,000 Fixed operating expenses 49,000 $ Operating income Selling price per unit. $ 52.00 Direct material per unit... $ 14.00 Direct labor per unit..... $ 11.00 Total annual manufacturing overhead .......... $ 180,000 Fixed portion of annual manufacturing overhead . $ 72.000 Variable operating expenses per unit sold ....... $ 7.00 Fixed operating expenses per year in total ...... $ 49,000 Units manufactured .............. 18,000 Units sold..... 14,000 75,000 Print Done Use the statements you prepared to answer the following questions: 1a What is the product cost per unit using absorption costing? 26