1. Fowler Company manufactures a single product. Operating data for the company and its absorption costing income statements for the last two years are presented below: Units in beginning inventory Units produced Units sold Year 1 Year 2 3,000 18,00018,000 15,00020,000 0 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income S240,000 $320,000 150,000 200,000 90,000 120,000 80,000 90,000 $10,000 $30,000 Variable manufacturing costs are $6 per unit. Fixed manufacturing overhead totals $72,000 in each year, which is allocated based on units produced. Variable selling and administrative expenses are S2 per unit sold Requirements: What was the unit product cost in each year under variable costing? Prepare new income statements for each year using variable costing Reconcile the absorption costing and variable costing net operating income for each year a. b. c