Requirement 1:

Prepare a variable costing contribution format income statement for each year. (Input all amount as positive value. In case of net operating loss it should be indicated with a minus sign. Omit the "$" sign in your response.)

Requirement 2:

Determine the absorption costing and variable costing net operating income figures for each year. (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

The following Information apples to the questions displayed below.] During Heaton Company's first two years of operations, the company reported absorption costing net operating Income as follows: Year 1 Year 2 Sales ($60 per unit) Cost of goods sold ($29 per unit) Gross margin Selling and administrative expenses' Net operating Income (loss) $1,020,000 493,000 527,000 303,000 $224,000 $1,620,000 783,000 837,000 333,000 $504,000 $3 per unit varlable; $252,000 fixed each year. The company's $29 unit product cost Is computed as follows: Direct materlals Direct labor Varlable manufacturing overhead Fixed manufacturing overhead ($264,000 Absorption costing unlt product cost $5 10 2 12 %29 22,000 units)