1 Based on the costs below please identify what the cost per unit would be under both absorption costing and variable costing. Direct Materials Direct Labor Expected Unit Production Variable Overhead Fixed Overhead Selling Price $3 per unit $9 per unit 70,000 $5 per unit $560,000 per year $35 per unit Absorption Costing Variable Costing 2 If there is no fixed overhead will the per unit cost of production be the same under both the absorption and variable costing methods YES NO 3 Below explain to me in which certain situation is it possible for variable and absorption costing to result in the same income (Hint: The only difference is the costs are absorbed by inventory) 4 Given the information from question #1 please provide a invomce statement for the period under the assumption that they sold 500 units. Variable Costing Sales Variable Expenses Contribution Margin Fixed Expenses Variable Costing Sales Variable Expenses Contribution Margin Fixed Expenses Net Income Absorption Costing Sales Cost of Goods Sold Gross Margin Selling and admin. Expense Net income 5 Which had the greater net income for the period and why