EOC 20 pts 6 Saved Required information Case 4-29 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements (L04.1, LO4-2] [The following information applies to the questions displayed below.) O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations Variable costs per unit! Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and adsinistrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $550,000 $180,000 During its first year of operations. O'Brien produced 99.000 units and sold 70.000 units. During its second year of operations, it produced 82.000 units and sold 106,000 units. In its third year, O'Brien produced 85,000 units and sold 80,000 units. The selling price of the company's product is $79 per unit Case 4-29 (Algo) Part-1 Required: 1. Assume the company uses variable costing and a FIFO Inventory flow assumption (FIFO means first in first-out. In other words, it that the oldes nits in inventore d first Required information Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first in first-out. In other words, it assumes that the oldest units in inventory are sold first): a. Compute the unit product cost for Year 1 Year 2 and Year 3. b. Prepare an income statement for Year 1. Year 2 and Year 3. Complete this question by entering your answers in the tabs below. Req1A Reg 1B Prepare an income statement for Year 1, Year 2, and Year 3. O'Brien Company Variable Costing Income Statement Year 1 Year 2 Sales $ 5,530,000 $8,374,000 Variable expenses Variable cost of goods sold Variable selling and administrative Year 3 $ 6,320,000 Total variable expenses Contribution margin Fixed expenses 5,530,000 3,374,000 6320,000