Artesian Limited produces coin purses and key chains. Selected data for the past year are as follows: Coin Purse Key Chain Production (units) 100,000 200,000 Sales (units) 90,000 210,000 Selling price $5.50 $4.50 Direct labour hours 50,000 80,000 Manufacturing costs: Direct materials $75,000 $100,000 Direct labour $250,000 $400,000 Variable overhead $ 20,000 $ 24,000 Fixed overhead $ 50,000 $ 80,000 Non Manufacturing costs: Variable selling $30,000 $60,000 Direct fixed selling $35,000 $40,000 Common fixed selling $25,000 $25,000 Budgeted fixed overhead for the year, equaled the actual fixed overhead. Fixed overhead is assigned to products using a plantwide rate based on expected direct labour hours, which were 130,000. The company had 10,000 key chains in inventory at the beginning of the year. These key chains had the same unit cost as the key chains produced during the year. Required: (i) Compute the unit cost for the coin purses and key chains using the variable costing method. Compute the unit cost using absorption costing. (ii) Prepare an income statement using absorption costing (iii) Prepare an income statement using variable costing. (iv) Explain the reason for any difference between absorption and variable costing operating incomes. (v) Prepare a segmented income statement using products as segments.