The O'Brien Company manufactures and sells a product. The following information pertains to each of the company's first three years of operations:

Variable costs per unit:
Producing:
Direct materials	28 dollars
direct labor	14 dollars
Variable production load	5 dollars
Variable sales and management	2 dollars
Annual fixed costs:
Fixed production load	530.000 $
Fixed selling and administrative expenses	150.000 $

During its first year of operation, O'Brien produced 96,000 units and sold 73,000 units. In its second year of operation, it produced 81,000 units and sold 99,000 units. O'Brien produced 81,000 units and sold 76,000 units in its third year. The selling price of the company's product is $75 per unit.

3.	Suppose the company uses absorption costing and a FIFO inventory flow assumption (FIFO stands for first-in, first-out. In other words, it assumes that the oldest units in inventory are sold first):

A.	Calculate the unit product cost for Year 1, Year 2, and Year 3 . (Round your intermediate calculations and final answers to 2 decimal places.)

	Unit Product Cost
Year 1
2 years
3 years

Prepare an income statement for Year 1, Year 2, and Year 3 . (Round your intermediate calculations to 2 decimal places.)

O'Brien Company
Absorption Cost Income Statement
	Year 1	2 years	3 years
Sales
cost of goods sold
Gross Margin	0	0	0
Sales and Management Expenses
Net operating income	0 $	0 $	0 $

Suppose the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last in, first out. In other words, it assumes that the newest units in inventory are sold first):

A.	Calculate the unit product cost for Year 1, Year 2, and Year 3 . (Round your intermediate calculations and final answers to 2 decimal places.)

	Unit Product Cost
Year 1
2 years
3 years

Prepare an income statement for Year 1, Year 2, and Year 3 . (Round your intermediate calculations to 2 decimal places.)

O'Brien Company
Absorption Cost Income Statement
	Year 1	2 years	3 years
Sales
cost of goods sold
Gross Margin	0	0	0
Sales and Management Expenses
Net operating income	0 $	0 $	0 $