Please explain how you got the answers that you did. Thank you!

Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials 25 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses 15 $ 2 250,000 S 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $60 per unit Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2 b. Prepare an income statement for Year 1 and Year 2 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2 b. Prepare an income statement for Year 1 and Year 2 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 3 Req 2B Assume the company uses variable costing. Compute the unit product cost for Year 1 and Year 2 Year 1 Year 2 Unit product cost Req 1A Req 1B Req 1B Req 2B Req 1A Req 2A Req 3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2 Walsh Company Income Statement Year 1 Year 2 Sales Variable expenses Variable cost of goods sold Variable selling and administrative Indirect labor Indirect materials Total variable expenses Contribution margin 0 0 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Purchases Ending merchandise inventory Total fixed expenses 0 Net operating income (loss) $ Req 1A Req 2A Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 3 Req 2B Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. (Round your answer to decimal places.) Year 1 Year 2 Unit product cost KReq 1B Req 2B Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round your intermediate calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Year 2 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ $ 0 0 Req 2A Req 3 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses o deductions as a negative value.) Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operaing income Reg 3 Req 2B