Units produced . . . . . . . . . . 4000Units sold . . . . . . . . . . . . . . 32

Units produced . . . . . . . . . . 4000Units sold . . . . . . . . . . . . . . 3200Required:1. Compute the unit product cost under:a. Absorption costing.b. Variable costing.2. Prepare an income statement for the month using absorption costing.3. Prepare a contribution format income statement for the month using variable costing.4. Assume that the company must obtain additional financing. As a member of top management which of the statements that you have prepared in (2) and (3) above would you prefer to take with you as you negotiate with the bank? Why?5. Reconcile the absorption costing and variable costing net operating income figures in (2) and (3) Above.