During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Using variable costing, what is the unit product cost for both years?

Unit product cost What is the variable costing net operating income in Year $1$ and in Year $2?$

Note: Loss amounts should be indicated with a minus sign. Reconcile the absorption costing and the variable costing net operating income figures for each year.

$$3$ per unit varlable; $$250,000$ fixed each year.

The company's $$40$ unit product cost is computed as follows:

Production and cost data for the first two years of operations are:

Required:

Using varlable costing, what is the unit product cost for both years?

What is the varlable costing net operating income in Year $1$ and in Year $2?$

Reconcile the absorption costing and the varlable costing net operating income figures for each year.