Year 1 Year 2 Sales (@ $61 per unit) $ 1,159,000 $ 1,769,000 760,000 1,160,000 Cost of goods sold (@ $40 per unit) 399,000 609,000 Gross margin 306,000 336,000 Selling and administrative expenses $ 93,000 $ 273,000 Net operating income $3 per unit variable; $249,000 fixed each year. The company's $40 unit product cost is computed as follows: Direct materials $8 Direct labor 10 4 Variable manufacturing overhead Fixed manufacturing overhead ($432,000 24,000 units) 18 Absorption costing unit product cost $ 40 Production and cost data for the first two years of operations are: Units produced Year 1 Year 2 Units sold 24,000 24,000 19,000 29,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figres for each year