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Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. the company's product cost of $30 per unit is computed as follows. direct materials $ 4 per unit direct labor $ 16 per unit variable overhead $ 4 per unit fixed overhead ($600,000 / 100,000 units) $ 6 per unit required: 1. prepare an income statement for the company under variable costing.
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