Tustin Corporation has provided the following data for its two most recent years of operation:

Selling price per unit	$	68
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	10
Direct labor	$	6
Variable manufacturing overhead	$	4
Fixed manufacturing overhead per year	$	220,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	6
Fixed selling and administrative expense per year	$	61,000

	Year 1	Year 2
Units in beginning inventory	0	1,000
Units produced during the year	11,000	10,000
Units sold during the year	10,000	7,000
Units in ending inventory	1,000	4,000

The unit product cost under variable costing in Year 1 is closest to:

Multiple Choice

$46.00

$26.00

$20.00

$40.00