AIC Corporation produces a single product. The company had the following results for its first two years of operation (In thousands of dollars): In Year 1, this company produced and sold 40,000 units of its only product; in Year 2, it again sold 40,000 units, but increased production to 50,000 units. Its variable production cost is $5 per unit and its fixed manufacturing overhead cost is $600 a year. Fixed manufacturing overhead costs are applied to the product based on each year's unit production (i.e., a new fixed manufacturing overhead rate is computed each year). Variable selling and administrative expenses are $2 per unit sold. Required: 1.1. Compute the unit product cost for each year under absorption costing and under variable costing. 1.2. Prepare a contribution format income statement for each year using variable costing. 1.3. Reconcile the variable costing and absorption costing income figures for each year