Weish Company manufactures and sells one product. The following Information pertains to each of the company's first two years operations: Variable costs per unit: Manufacturing: Direct saterials Direct labor Variable manufacturing overhead Variable selling and advinistrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 25 $15 5.4 $3 $ 240,000 $ 80,000 During its first year of operations, Welsh 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 556 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 1 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 absorption costing net operating Income in Year 1, Answer is not complete. Complete this question by entering your answers in the tabs below. Required 14 Required 18 Required 24 Required 28 Required 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. Note: Round your intermediate calculations to 2 decimal places. Which Company Income Statement Sales Year 1 $2.240,000 Year 2 $ 2.800,000 6 Cost of goods sold 1.952,000 2,500,000 Gross margin 288,000 132,500 Selling and administrative expenses 200,000 230,000 Nat operating income (loss) 88,000 $ (97,500)