Que. No. 2. ABC a product has just organized a new division to manufacture and sell specially designed tables using select hardwoods for PCs. The company's new plant is highly automated and thus requires high monthly fixed costs, as shown in the schedule below: Manufacturing cost: Variable cost per unit: DM - $80 DL 6 VMOH 4 FMOH cost (total) $240,000 S&Ad cost: Variable 15% of sales Fixed (total) $160,000 The company regards all of its workers as full time employees and has a long-standing no - layoff policy. Furthermore, production is highly qutomated. During a particular month of operations, the following activity was recorded: Unit Produced 2,000 Unit Sold 1,400 Selling price per unit $450 Required: (2+2+2+1.5+2+1.5)=11 1. Compute the unit product cost under AC and VC methods. 2. Prepare an Income Statement for the month using AC method. 3. Calculate the amount of VC net income using a reconciliation report. 4. Assume that in order to continue operations, the company must obtain additional financing. As a member of top management which of the statements that you have prepared would you prefer to take with you as you negotiate with the bank? Why? 5. Show the break-up of COGS under AC. 6. Show the break-up of El under VC method