LEANDER OFFICE PRODUCTS INC Income Statement $291,160 Sales (50,200 units) Variable expenses $134,536 39,156 Variable cost of goods sold* Variable selling and administrative 173,692 expenses 117,468 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expenses 121,290 15,060 136,350 Operating loss S (18,882) Consists of direct materials, direct labour, and variable manufacturing overhead Leander is discouraged over the loss shown for the month, particularly since she had planned to use the statement to encourage investors to purchase stock in the new company. A friend who is an accountant insists that the company should be using absorption costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have reported a profit for the month Selected cost data relating to the product and to the first month of operations follow: Units produced Units sold Variable costs per unit: 62,200 50,200 Direct materials Direct labour Variable manufacturing overhead $ 1.04 $ 1.25 $ 0.39 Variable selling and administrative expenses 0.78 Required 1. Complete the following a. Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) b. Redo the company's income statement for the month using absorption costing Cost of goods sold 0