Walsh Company manufactures and sells one productThe following information pertains to each of the company's first two years of operations: Variable costs per unit Direct materials S 26 Direct labor S 14 Variable manufacturing overhead S5 Variable selling and administrative S4 Foxed costs per year Foxed manufacturing overhead $320,000 Faced selling and administrative expenses $ 70000 During its first year of operations, Walsh produced 50,000 units and sold 40000 units. During its second year of operations, it produced 40000 units and sold 50,000 units. The selling price of the company's product is $52 per unit Required: 1. Assume the company uses variable costing a Compute the unit product cost for year and year 2. Year 1 Year 2 Unit product costs 45 $ 45 b. Prepare an income statement for year and year 2. Walsh company Income Statement Year Year 2 $ 2.060,000 S 2.600.coo Sales Variable expenses Indirect materials Indirect labor Variable selling and administrative Variable cost of goods said Total variable expenses 2080.0002.600,000 Fixed expenses Total fixed expenses Net operating income (loss) S 200000 $ 2,600,000