Problem 2-40 Praxial Statement Dements Cost Behavior |LO 25, 26, 28) 2. Nincome $168.000 Mason Corporation legm operations at the leginning of the current year. One of the company's products, a refrigeration clement, sells for $185 per unit. Information related to the current year's activities follows 37 Vible costs perunt Direct material Dired labor Mandatulng owerhead Annual hed costs Manufacturing overhead Seling and admin Production and Sales active Productor Sales funt $600 000 DSC000 20.000 20.000 Mason carries its finished goods imventory at the average unit cost of production and is subjecta 3 percent income tax rat. There was no work in process at year-end Required 1. Determine the cost of the December 31 finished goods inventory 2 Compute Mason's net income for the current year ended December 31 3. If nett year's production de chezes to 23,000 units and general cost behavior patterns dont dangt, what is the likely effect on a. The direct labor cost of $37 per unic? Why? The fixed manufacturing overhead cost of $600,000? Why? The fixed selling and administrative cost of $860,000? Why? & The scrage unit cost of production? Why