Self practice in the class Costner Company uses Absorption Costing System for the single product it manufactures. The following information is available for the year: The company produced 12000 units and sold 10000 units. Direct Material and Direct labour are Variable Costs. One unit of direct material goes into each unit of finished goods. Overheads rates are based on a volume of 12000 units and are RO. 1.08 and RO. 1.44 per unit of variable and fixed overheads respectively. The ending inventory is 2000 units of finished goods on hand at the end of 2018. Assume there are no opening inventories. Calculate: 1. The production cost per unit under variable and absorption costing. 2. Income statement under Absorption and Variable Costing. 3. Explain the difference in the Net Income