Exercise 7-9 (Static) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, L07-2, L07-3] Walsh Company manufactures and sells one product. The following Information pertains to each of the company's first two years of operations: During Its first year of operations, Walsh produced 50,000 unlts and sold 40,000 unlts. 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 $60 per unit. Requlred: 1. Assume the company uses varlable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an Income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an Income statement for Year 1 and Year 2. 3. Reconclle the difference between varlable costing and absorption costing net operating Income In Year 1. Complete this question by entering your answers in the tabs below. Assume the company uses variable costing. Compute the unit product cost for Year 1 and Year 2