1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
3. the company’s controller believes that the company should have set last year’s selling price at 51 instead of 50 per unit. She estimates the company could have sold 15,000 units at a price of 51 per unit, thereby increasing the company’s gross margin by 2,000 and its net operating income e,do you think the price increase would have been a good idera?