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Required information [The following information applies to the questions displayed below.] O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials 27 Direct labor 16 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $550, 090 Fixed selling and administrative expenses $140, 090 During its first year of operations, O'Brien produced 99,000 units and sold 75,000 units. During its second year of operations, it produced 85,000 units and sold 104,000 units. In its third year, O'Brien produced 83,000 units and sold 78,000 units. The selling price of the company's product is $76 per unit. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3