VARIABLE COSTING QUESTION Crystal Barrow's manufactures and sells a single product. The following costs were incurred during 2019, the company's first year of operations: Variable Costs per unit: Production: Direct materials Direct labour Variable Manufacturing Overhead Selling and administrative FIXED COSTS PER YEAR Manufacturing Overhead Selling and administrative $6.00 $9.00 $ 3.00 $4.00 $300,000 $ 190,000 During 2019, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $ 50 per unit. Required: 1. Assume that the company uses the absorption costing method: a. Compute the cost to produce one unit of product. b. Prepare an income statement for 2019 2. Assume the company uses the variable costing method: a. Compute the cost to produce one unit of product.. b. Prepare an income statement for 2019. 3. Reconcile the variable costing and absorption costing operating incomes. Explain the reasons for the differences between the variable costing and absorption costing net incomes