Please answer those two questions. Thanks.

During Heaton Company's first two yoars of operations, the company reported absorption costing not operating income as follows: S 930,000 1,530,000 527,000 867,000 403,000663,000 Sales (@ $60 per unit) Cost of goods sold (@ $34 per unit) Gross margin Selling and administrative expenses Net operating income 300,700 330,700 $ 102,300 332,300 $3 per unit variable; S254.200 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($369,000 20,500 units)18 $ 34 Absorption costing unit product cost Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the two years are: Units produced Units sold 1 Year 2 20,500 20,500 15,50025,500 Required: 1. Prepare a variable costing contribution format income statement for each year. Heaton Company Variable Costing Income Statement Year 1 Year 2