Campbell & Orlich IndustriesC&O Industries is an innovative technology company that designs, produces, manufactures, anddistributes chip wafers used in the semiconductor manufacturing processes of firms such asNVIDIA, Micron Technology, and AMD. It has concentrated its operations to the point where itis taking advantage of full scale economies afforded by producing a single product for its entire operational base: WAFX470. Since there is a very strong market for the companys product splitbetween three customers, expectation are running high that C&O will be running at full capacity for the next several years and may undertake steps to increase its capacity to meet escalating demand; the major concern being product quality as management desires wafer specification tobe within 1/1,000,000,000 of a micron.Over the past three years of operations, which were the first three years of existence for theorganization, the following data were relevant to operations: Per Unit Variable Costs:Manufacturing:DMDLMO-VariableSelling & AdministrativeAnnual Fixed Costs: Manufacturing OverheadSelling & Administrative Costs$30$18$6$4$600,000$180,000C&O sells its chip wafer for $70/unit for which the following data pertain to the operational relationship between production and sales: Year123Production (Units)100,00075,00080,000Sales (Units)80,00090,00075,000Requirement #1:The cost flow assumption is assumed to be FIFO (oldest Units sold first) and VariableCosting is to be used.

A. You are to calculate the per unit cost for each of the three years being discussedB. You are to prepare an income statement for each of the three years being discussedRequirement #2:The cost flow assumption is assumed to be LIFO (newest Units sold first) and VariableCosting is to be used.A. You are to calculate the per unit cost for each of the three years being discussedB. You are to prepare an income statement for each of the three years being discussedC. Explain the reason for the unusual results between requirements 1&2 aboveRequirement #3:The cost flow assumption is assumed to be FIFO (oldest Units sold first) and AbsorptionCosting is to be used.A. You are to calculate the per unit cost for each of the three years being discussedB. You are to prepare an income statement for each of the three years being discussedRequirement #4:The cost flow assumption is assumed to be LIFO (newest Units sold first) and AbsorptionCosting is to be used.A. You are to calculate the per unit cost for each of the three years being discussedB. You are to prepare an income statement for each of the three years being discussed