The following data are available for 2010 from the accounting records of AAA Company:

Units in beginning inventory	0
Units produced	50,000
Units in ending inventory	8,000
Selling price per unit	$32
Manufacturing costs
Direct materials (per unit)	$8
Direct labor (per unit)	$5
Variable overhead (per unit)	$4
Fixed overhead (total)	$150,000
Selling and Administrative expenses
Variable (per unit)	$4
Fixed	$200,000

Required:

a. Compute cost per unit using absorption costing and variable costing

b. Prepare an income statement using absorption costing and variable costing.