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: Direct materials 25 Direct labor 5 15 Variable manufacturing overhead 55 Variable selling and administrative $2 Fixed costs per years Exed manufacturing overhead 5.250,000 Fixed selling and administrative expenses $ 30,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, produced 40,000 units and sold 50,000 units. The selling price of the company's product is $60 per unit 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 Yeart 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 abrorption costing net operating income in Year frees