Breedon Corporation produces a single product. Data concerning the company's operations last year appear below:

Required:
a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing.d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

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Year Product x Product y $90,000 $50,000 90,000 80,000 60,000 60,000 4 20,000 70,000 2. 3.