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IV. Problem Solving. 4 points Submit your solution to my email. Problem 2: Variable Costing Smith Company produces and sells one product for P40 per unit. The company has no beginning inventories. Its variable manufacturing cost per unit is P18 and the variable selling and administrative expense per unit is P4. The fixed manufacturing overhead and fixed selling and administrative expense total P80,000 and P20,000, respectively. Smith Company produced 8,000 units and sold 7,500 units during the year. Required: 1. What is the net operating income under variable costing? (2 points) 2. What is the net operating income under absorption costing? ( 2 points)