EXERCISE 5-9 Variable and Absorption Costing Unit Product Costs and income Statements 104-1 LOS 2.06-3 Walsh Company manufactures and sells come product. The following information pertains to each of the company's first two years of operations Variable costs per unit Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable seling and administrative Pored costs per year Fored manufacturing overhead Pued seling and administrative expenses $25 $15 55 $2 $250,000 $80,000 During its first year of operations, Walsh produced 50.000 units and sold 40,000 units. During its second year of operations, it produced 40.000 units and sold 50,000 units. The selling price of the company's product is 560 per unit Request 1. Assume the company es variable costing Compute the unit product cost for Year 1 and Year 2 b. Prepare an income statement for Year 1 and Year 2 Accome the company es absorption costing a Compute the unit product cost for Year 1 and Year 2 Prepare an income statement for Year 1 and Year 2 3. Explain the difference betweent variable costing and absorption costing net operating income in Year 1. Abo, explain why the two net operating incomes differ in Year 2. 2