Q6: Maxwell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $18 Direct labor $7 Variable manufacturing overhead $2 Variable selling and administrative $2 Fixed costs per year: Fixed manufacturing overhead $200,000 Fixed selling and administrative expenses $110,000 During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company's product is $50 per unit. Required: 1. Assume that the company uses absorption costing: (5 Marks) a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: (5 Marks) a. Compute the unit product cost. b. Prepare an income statement for the year.