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Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out; in other words, it assumes the oldest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Compute the unit product cost for Year 1, Year 2, and Year 3. Unlimited Attempts Allowed Details Answer each question as if you were the managerial accountant for the company and are presenting to the company vice-president regarding the information requested in the case study. You must not only give the correct numbers but also explain to management what variable costing is, why variable costing is useful and why the net income is different for absorption vs variable costing and also why net income is different for LIFO vs FIFO. Then follow the explanation up with a recommendation for management reporting. For each answer explain the terminology and concepts used. For example, rather than just give the product costet income, explain the calculation - this is a professional report from a managerial accountant to the company vice-president. Use outside sources when necessary BUT MAKE SURE YOU CITE THEM! ? Required information \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ O'Brien Company } \\ \hline \multicolumn{4}{|c|}{ Variable Costing Income Statement } \\ \hline & Year 1 & Year 2 & Year 3 \\ \hline & & & \\ \hline \multicolumn{4}{|l|}{ Variable expenses: } \\ \hline \\ \hline \\ \hline \\ \hline \multicolumn{4}{|c|}{ angle} \\ \hline \multicolumn{4}{|c|}{ Total variable expenses } \\ \hline \\ \hline \multicolumn{4}{|l|}{ Fixed expenses: } \\ \hline \multicolumn{4}{|c|}{7} \\ \hline \\ \hline \\ \hline \\ \hline \multicolumn{4}{|l|}{ Total fixed expenses } \\ \hline & & & \\ \hline \end{tabular}

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