Check 2 Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: 10 points Sales (e $62 per unit) Cost of goods sold ( $33 per unit) $1,116,0001,736,000 594,000 924-000 eBook Print References Gross margin Selling and administrative expenses* Net operating income 812,000 300,000330.000 $ 1222,000 482,000 $3 per unit variable: $246,000 fixed each year The company's $33 unit product cost is computed as follows Direet materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (S253,000 23,000 units) Absorption costing unit produet cost s 10 S 33 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges orn production equipment and buildings Production and cost data for the first two years of operations are: Units produced Units sold 23,000 23,000 18.000 28,000