During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: $3 per unit variable; $251,000 fixed each year. The company's $35 unit product cost is computed as follows: Production and cost data for the first two years of operations are: 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