Segmented Income Statements, Inventory Valuation

For the coming year, Paulson Computers Inc. expects to produce and sell 144,000 computers. Of these, 64,000 will be consumer (personal) computers and 80,000 will be small business computers. Common fixed overhead is $1,700,000. Additional information for the coming year is as follows:

	Consumer Computer			Small Business Computer
Price	$940			$1,675
Unit direct materials	649			988
Unit direct labor	90			310
Unit variable overhead	23			50
Unit variable selling expense	35			65
Total direct fixed overhead	120,000			350,000

Fixed selling and administrative expense for Paulson Computers is $2,960,000 per year.

Required:

1. Conceptual Connection: Calculate the unit variable cost under variable costing.

	Total Unit Variable Cost
Consumer computers	$ 797
Small business computers	$ 1413

Is this cost the same as unit variable product cost? NO

2. Prepare a segmented variable-costing income statement for next year. The segments correspond to product lines: consumer computers and small business computers.

Okay Folks. I have this Partially Answered I just need number 2 done. Thanks!