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 Ye Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Req 2B Reg 3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Walsh Company Income Statement Year 2 Year 1 $ 2,120,000 $ 2,650,000 Sales Variable expenses: Variable cost of goods sold Variable selling and administrative 2,200,000 120,000 1,880,000 1,760,000 120,000 1,880,000 240,000 4,000,000 (1.880,000) 4,200,000 (1,550,000) Fixed manufacturing overhead Fixed selling and administrative expense Total fixed expenses Net operating income (loss) 400,000 80,000 480,000 0 in en ny $ (1,550,000) Draw