The following costs were incurred for the single product produced during the first year of operations for the Fairfax Manufacturing Company: Variable costs per unit: Manufacturing: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 264,000 Fixed selling and administrative $ 174,000 During the year, the company produced 22,000 units and sold 18,000 units. The selling price of the companys product is $45 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.