PROBLEM 6-19 Variable Costing Income Statement; Reconciliation [L.02, L03] During Heaton Company's first two years of operations, the company reported absorption costi net operating income as follows: *\$2 per unit variable; $130,000 fixed each year. The company's $18 unit product cost is computed as follows: Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the two years are: Required: 1. Prepare a variable costing contribution format income statement for each year. 2. Reconcile the absorption costing and the variable costing net operating income figures for each year