During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Year 1 Year 2 Sales ( $64 per unit) Cost of goods sold ($36 per unit) Gross aargin Selling and adninistrative expenses* $1.088, 0001.728, 000 612,000 476, 000222.000 756, 000 Net operating income $1175.000 425, 000 $3 per unit variable; $250,000 fixed each year. The company's $36 unit product cost is computed as follows: Direct naterials Direct labor ariable nanufacturing overhead Fixed nanufaeturing overhead ($286,000 22,000 units) Absorption costing nit product cost 12 13 36 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Units produced Units sold Tear1 22, 000 17, 000 Year 2 22.000 27, 000 Answer the questions below What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (oss) Reconcile the absorption costing and the variable costing net operating income figures for each year. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and AbsorptionC Net Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income