Unicorn Company manufactures a device that is used by internet users to boost Wi-Fi signals. The following data relates to the first month of operation:

* Beginning inventory: 0 units

*Units produced: 40,000 units

* Units sold: 35,000 units

* Selling price: $ 72 per unit

Marketing and administrative expenses:

* Variable marketing and administrative expenses per unit: $ 2.4

* Fixed marketing and administrative expenses per month: $ 672,000

Manufacturing costs:

* Direct materials cost per unit: $ 18

* Direct labour cost per unit: $ 8.4

* Variable manufacturing overhead cost per unit: $ 2.4

* Fixed manufacturing overhead cost per month: $ 768,000

Management is anxious to see the success as well as profitability of newly designed unique booster.

Required to:

i. Calculate unit product cost.

ii. Prepare income statement under marginal costing system and absorption costing system.

iii. Prepare a schedule to reconcile the net operating income under variable and absorption costing system and state the reasons for difference in profit under these costing systems.

iv. Compare marginal costing system and absorption costing system. Also, analyse which method is better and why.

additional information :

needs to give an introduction about Marginal costing and Absorption costing. (Approximately 500 words) Also, need to show the working note for the calculations, if any. Question 2-i, ii and iii (Approximately 500 words) Comparison between the two methods (Approximately 600 words)