Boylston Corporation has provided the following data for its two most recent years of operation.The company makes a product that it sells for $75 per unit.It began Year 1 with no units in beginning inventory. 
Required:
a.Assume the company uses absorption costing.Compute the unit product cost in each year.
b.Assume the company uses variable costing.Compute the unit product cost in each year.
c.Assume the company uses absorption costing.Prepare an income statement for each year.
d.Assume the company uses variable costing.Prepare an income statement for each year.
Definitions:
Willingness to Pay
The maximum amount a buyer is prepared to spend on a good or service, reflecting the value they derive from it.
Consumer Surplus
The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.
Graphing Calculator
A handheld device capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.
Consumer Surplus
The deviation between consumers’ anticipated payment for a product or service and the eventual price paid.
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