Mo Inc. produces an oak rocking chair that is designed to ease back problems. The chairs sell for $400 each. The results of last year's operations are as follows: Units in beginning inventory. 0 Units produced during the year. 40,000 Units sold during the year. 30,000 Units left in ending inventory. 10,000 Variable manufacturing costs per unit. Direct materials $150 Direct labor 50 Variable manufacturing overhead 25 Variable selling and administrative 20 Total variable cost per unit $245 Fixed costs: Fixed manufacturing overhead $1,200,000 Fixed selling and administration 1,000,000 Total fixed costs $1,220,000 maalin a) Determine the unit product cost under absorption costing and variable costing. b) Prepare an income statement using variable costing. c) Prepare an income statement using absorption costing. d) Explain the difference in operating income for the two costing systems