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: $ 20 $13 $5 $ 4 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 400,000 Fixed manufacturing overhead Fixed selling and administrative$60,000 expenses 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 $53 per unit. 2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answer to 2 decimal places.) Year 1 Year 2 Unit product cost 46.00 48.00 b. 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 (loss) $ 2,120,0001 $ 2,650,000 2,400,000 250,000 240,000 1,840,000 280,000 240,000 . Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2. (Loss and deduction amounts should be indicated with a minus sign.) Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income (loss)