2 value 10.00 points During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows Sales (@ $61 per unit) S 976,000 $1,586,000 962,000 Cost of goods sold (@ S37 per unit) Gross margin Selling and administrative expenses Net operating income 592,000 384,000624,000 327,600 297,600 S 86,400 S 296,400 $3 per unit variable, $249,600 fixed each year The company's $37 unit product cost is computed as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($378,000 -21,000 units) 18