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 administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 26 14 5 4 $540,000 $ 190,000 During its first year of operations, O'Brien produced 98,000 units and sold 71,000 units. During its second year of operations, it produced 79,000 units and sold 101,000 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 $74 per unit. 1. Award: 2.50 points 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. Req 1A Reg 1B Prepare an income statement for Year 1, Year 2, and Year 3. Year 3 O'Brien Company Variable Costing Income Statement Year 1 Year 2 Sales Variable expenses: Variable cost of goods sold Variable selling and administrative