Max Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations. Variable cost per unit: Production: Direct materials P18 Direct labor 7 Variable manufacturing overhead 2 Variable selling and administrative 5 Fixed costs per year: Fixed manufacturing overhead P160,000 P110,000 Fixed selling and administrative expenses During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company's product is P50 per unit. Required: 1. Assume the company uses absorption costing method. a. Compute the unit product cost b. Prepare the income statement for the year.