Problem 2 - Fill in the blank Year 1 Year 2 Year 3 Sales ..... Cost of goods sold.. Gross margin.... Selling and administrative expenses Net operating income (loss).... $800,000 580,000 220,000 190,000 $ 30,000 $640,000 400,000 240,000 180,000 $ 60,000 $800,000 620,000 180,000 190,000 $ (10,000) Year 1 Year 2 Year 3 Production in units .. Sales in units .. 50,000 50,000 60,000 40,000 40,000 50,000 Additional information about the company follows: 1. The company's plant is highly automated. Variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) total only $2 per unit, and fixed manufacturing overhead costs total $480,000 per year.' Fixed manufacturing overhead costs are applied to units of product on the basis of each year's production. + 3. Variable selling and administrative expenses were $1 per unit sold in each year. Fixed selling and administrative expenses totaled $140,000 per year.' 4. The company uses a FIFO inventory flow assumption. Answer Determine the amount of the following using the given data No. Questions 14 Year 2 absorption costing product unit cost. 2 Year 1 total contribution margin. 3. Year 3 fixed manufacturing overhead deferred in the ending inventory." 4 Year 2 fixed manufacturing overhead released in the beginning inventory. 5. Year 2 variable costing net operating income