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 mit; Manuf acturing Direct materials Direct labor 25 15 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manuf acturing overhead Fixed selling and administrative expenses $ 250, 000 $80, 000 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 $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 Year 1and 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 1and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Walsh Company Income Statement Year 2 Year 1 Sales Net operating income (loss) Assume the company uses absorption costing. 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 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses or deductions as a negative value.) Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income