Required information The following information applies to the questions displayed below.) O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturint overhead Fixed selling and administrative expenses $ $ $ $ 30 15 4 4 $570,000 $180,000 During its first year of operations, O'Brien produced 94.000 units and sold 72.000 units. During its second year of operations. It produced 77000 units and sold 94,000 units. In its third year, O'Brien produced 83.000 units and sold 78.000 units. The selling price of the company's product is $76 per unit. 3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first in tirst-out. In other words, it assumes that the oldest units in inventory are sold first a. Compute the unit product cost for Year 1 Year 2, and Year 3. b. Prepare an income statement for Year 1 Year 2 and Year 3. O'Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3 Sales $ 5,472,000 $7,144,000 $5,928,000 Cost of goods sold 3,964,320 Gross margin 1,507,680 7,144,000 5,928,000 Selling and administrative expenses 468,000 556,000 492,000 Net operating income $ 1,039,680 $6,588,000 $5,436,000