Problem 1: (20 points) Cinnabar, Ine, has provided the following data for the year Direct materials Direct labor $10 per unit Variable manufacturing overhead ixed manufacturing overhead Fixed selling and administrative costs Sales price $25,000 per year 15,000per year 575 per unit 500 units 5,000 units 4,500 units inning Finished Goods Inventory nits produced nits sold Assume no beginning inventories. Requirements: a) Compute Cinnabar's unit product cost under absorption costing and variable costing b) Prepare income statements for Cinnabar using absorption costing and variable costing