Operating data for Fowler Company and its absorption costing income statements for the last two years are presented below: Sales Cost of goods sold Gross margin Selling and administrative expense Operating income In Year 1, the company produced 18,000 units and sold 15,000 units of its only product; in Year 2, the company again produced 18,000 units, but sold 20,000 units. The company's variable manufacturing costs are $6 per unit, and its fixed manufacturing overhead cost is $72,000 a year. Fixed manufacturing overhead costs are applied at a rate of $4 per unit. Variable selling and administrative expenses are $2 per unit sold. Required: 3) Compute the unit product cost for the month under absorption costing and under variable costing. b) Prepare new income statements for each year the using contribution format with variable \"costing. ' c) Reconcile the absorption costing and variable costing income gures for each year. d) Explain why the ope rating income for Year 2 under variable costing was higher than the operating income under absorption costing, even though the same number of units were .solde'l