During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales ($65 per unit) Cost of goods sold (@ $35 per unit) Gross margin Selling and administrative expenses" Year 1 $ 1,071,000 Year 2 $ 1,701,000 595,000 945,000 476,000 756,000 302,000 332,000 $174,000 $424,000 Net operating income $3 per unit variable; $251,000 fixed each year The company's $35 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($286,000 22,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are Units produced Units sold Required: Year 1 22,000 17,000 Year 2 22,000 27,000 9 13 $35 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 27 3. Reconcile the absorption costing and the variable costing net operating Income figures for each year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost Required 2 >