During Heaton Companys first two years of operations, it reported absorption costing net operating income as follows: Year $1$Year $2$Sales $($@ $$61$ per unit$)$$ $1,098,000$$ $1,708,000$Cost of goods sold $($@ $$39$ per unit$)702,0001,092,000$Gross margin$396,000616,000$Selling and administrative expenses$*306,000336,000$Net operating income$ $90,000$$ $280,000*$ $$3$ per unit variable; $$252,000$ fixed each year.The companys $$39$ unit product cost is computed as follows:Direct materials$ $8$Direct labor$11$Variable manufacturing overhead$3$Fixed manufacturing overhead $($$$391,000-$: $23,000$ units$)17$Absorption costing unit product cost$ $39$Production and cost data for the first two years of operations are: Year $1$Year $2$Units produced$23,00023,000$Units sold$18,00028,000$Required:Using variable costing, what is the unit product cost for both years?What is the variable costing net operating income in Year $1$ and in Year $2?$Reconcile the absorption costing and the variable costing net operating income figures for each year.