1- using variable costing, what is the unit product cost for both years?2- what is the variable costing net operating income in year 1 and in year 2?3- Reconcile the absorption costing and the variable costing net operating income figures for each year

Year 1 Year 2 Sales (@ $60 per unit) $ 1, 200, 000 $ 1, 800,090 Cost of goods sold (@ $35 per unit) 700, 000 1, 050, 090 Gross margin 500,000 750,000 Selling and administrative expenses* 310, 000 340, 000 Net operating income $ 190, 000 $ 410,000 * $3 per unit variable; $250,000 fixed each year. The company's $35 unit product cost is computed as follows: Direct materials Direct labor 8 Variable manufacturing overhead 2 Fixed manufacturing overhead ($400,000 : 25,095 units) 16 Absorption costing unit product cost $ 35 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 25, 000 25, 000 Units sold 20,000 30,000