Additional information about the company follows.

A$)$ The companies plant is highly automated. Variable manufacturing expense total only two dollars per unit and fix manufacturing overhead expenses total $$493,440$ per year.

B$)$ s a new fixed manufacturing overhead rate is computed each year based on that years actual fix manufacturing overhead cost divided by the actual number of units produced.

C$)$ variable selling and administrative expenses were one dollar per unit sold in each year. Fix selling and administration expenses totaled $$141,120$ per year.

D$)$ the company uses a FIFO inventory flow of Sumption

REQUIRED

$1)$prepare a variable costing income statement for each year

$2)$

A$)$ compute the unit product cost in each yeat under absorption costung Show how much of this cost is variable and how much is fixed

B$)$ reconcile the variable costing and absorption costing net operation income figures for each year

$5)$ If lean production has been used during year two in year three, what would the companies net operating income or loss have been in each year under absorption costing