During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: \begin{tabular}{|c|c|c|} \hline & Year 1 & Year 2 \\ \hline Sales (@ S62 per unit) & $1,178,000 & $1,798,000 \\ \hline Cost of goods sold (@\$45 per unit) & 855,000 & 1,305,000 \\ \hline Gross margin & 323,000 & 493,000 \\ \hline Selling and administrative expenses* & 306,000 & 336,000 \\ \hline Net operating income & $17,000 & $157,000 \\ \hline \end{tabular} - \$3 per unit variable; \$249,000 fixed each year. The company's $45 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ( $480,00024,000 units) 20 Absorption costing unit product cost $45 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24,00024,000 Units sold 19,00029,000 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 figures for each year