Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Direct materials Fixed costs per year Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $ 28 $1,512,000 $ 834,000 278,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 72,000 units and sold 72,000 units. During its second year of operations, it produced 72,000 units and sold 67,800 units. In its third year Ogilvy produced 72,000 units and sold 76.200 units. The selling price of the company's product is $65 per unit Required: 1 Assume the company uses super-variable costing a. Compute the unit product cost for Year 1, Year 2, and Year 3. Unit Product Cost Year 1 Year 2 28 28 28 Year 3 b. Prepare an income statement for Year 1, Year 2, and Year 3 Ogilvy Company Super-Variable Costing Income Statement Year 1 Year 2 Year 3 Sales Variable cost of goods sold Contribution margin Fixed expenses Fixed manufacturing.overhead Fixed selling and administrative Total fixed expenses Net operating income (loss) 0 0 $ 0 $ $ 0 Compute the unit product cost for Year 1, Year 2, and Year 3. a. Unit Product Cost Year 1 Year 2 Year 3 b. Prepare an income statement for Year 1, Year 2, and Year 3 Ogilvy Company Variable Costing Income Statement Year 3 Year 1 Year 2 Sales Variable cost of geods sold 0 0 Contribution margin Fixed expenses Fixed manufacturing overhead Flxed selling and administrative Total fixed expenses 0 $ S 0 Net operating income (loss) 3. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. Year 1 Year 2 Year 3 Super-variable costing net operating income (loss) Add: Direct labor deferred in inventory under variable costing Deduct: Direct labor released from inventory under variable costing Variable costing net operating income (loss) 0 $ 0