During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:

Sales $($a $$62$ per unit$)$

Cost of goods sold $($a $$38$ per unit$)$

Gross margin

Selling and administrative expenses$*$

Net operating income

$\backslash$table$[[$Year $1,$Year $2],[$$$1,054,000,$$$1,674,000$