Question : You are given the following contribution margin income statement for Monopoly company, which produces the monopoly board game, for the month of June

X. Company Income statement For the month ended 30.June.2020
Net sales revenue	$5,000,000
Total variable cost
Variable manufacturing cost	(2,500,000)
Variable selling and administrative exp	(1,000,000)
Contribution margin	1,500,000
Total fixed cost
Fixed manufacturing cost	(300,000)
Fixed Selling and administrative exp	(200,000)
Operating income	$1,000,000

You know that 60,000 units were produced during June 2020, of which 50,000 units were sold - leaving 10,000 units in ending inventory.

1. For the month of June.2020, Calculate the product cost per unit using the absorption costing method.
2. For the month of June.2020, Calculate the period cost using the absorption costing method.
3. For the month of June.2020, Calculate the COGS amount that will appear in the traditional income statement.
4. For the month of June.2020, Calculate the operating expense amount that will appear in the traditional income statement.
5. Assume that monopoly company give its managers bonuses based on its operating income. If units sold were more than units produced, Which method (variable costing or absorption costing) would the managers prefer to use. Briefly explain why