Zola Company manufactures and sells one product. The following information pertains to the companys first year of operations

Variable cost per unit:
Direct materials	$	18
Fixed costs per year:
Direct labor	$	200,000
Fixed manufacturing overhead	$	250,000
Fixed selling and administrative expenses	$	80,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 25,000 units and sold 20,000 units. The selling price of the companys product is $50 per unit.

a.	Compute the unit product cost for the year.

b.	Prepare an income statement for the year.