OBrien Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations:

Case 5-29 Variable and Absorption Costing Unit Product Costs and Income Statements DLO6-1, LO6-2l IThe 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: $28 Direct materials Direct labor $15 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $520,000 $170,000 Fixed selling and administrative expenses During its first year of operations, O'Brien produced 99.000 units and sold 76,000 units. During its second year of operations, it produced 76,000 units and sold 94,000 units. In its third year, O'Brien produced 82,000 units and sold 77,000 units. The selling price of the company's product is $74 per unit