ABC Inc. is a manufacturing company that produces a single product. The company uses the absorption costing method to determine the cost of goods sold. The company had the following information for the year 2022:

• Sales revenue: $1,000,000
• Cost of goods sold: $600,000
• Direct materials: $100,000
• Direct labor: $200,000
• Factory overhead costs: $300,000
• Beginning inventory: $40,000
• Ending inventory: $50,000
• Total number of units produced: 20,000

Calculate the following:

1. The cost per unit using the absorption costing method
2. The variable cost per unit
3. The fixed cost per unit
4. The gross profit using the absorption costing method
5. The net operating income

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