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HE - I Normal No spac.. Paragraph . L . . . . . . . 2. ASSESSMENT 4 PROBLEM 6-19 Variable Costing Income Statement, Reconciliation LOG-2, 106-3 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $25 per unit). $ 1.000.090 $1.250.000 Cost of goods sold (@ $18 per unit). 720.090 900.000 Gross margin .. 260,000 350.090 Selling and administrative expenses" 210.000 230.000 Net operating income. . 70,000 $ 120,000 $2 per cra vatacts. $120.090 fred each year Chapter 6 The company's SIK unit product cost is computed on follows havy percent of fixed manutis turing out had consists of wages and udenes, the remainder sea sists of depreciation that's on production equipoical and buildings Production and con data for the find two year of operations us Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? each year. 3. Reconcile the absorption costing and the variable costing net operating income figures for