'This makes no sectse at att,' said Bal Sharp, managing director of Essex Company. "We sold the same number of units this yoar as wo did last year, yet oter probits have more thac doubled. Who made the goof the consuter or the people who operate it? The statemerts to which Mr Sharp was refering are shown bokw (abicorption costing basis): The statements above show the resalts of the frst two years of coeration. In the fest year, the company produced and sold 20 . Dop units, in the second year, the company again sold 20,000 unts, but it increased production in crder to have a imentery of units on hand, as shown below: Essox Company produces a single product; freed manufacturing overhead costs are appliod to the product on the basis of each year's peoduction. (Thus, a new fixed manufacturing overhead rato is computed each year.) Variable selling and odministrative expenses are 1 per unit sold. Required: 1.Compute the unit product cost for each year under absorption costing and variable costing. (Round your answers to 2 docimal places.) 2. Prepare a statement of proft and loss tor each year, using the contribution approach with variable costing. (Enter all answers as a positive values except losses which should be indicated with a minus sign.)