2 2 Change alll of the numbers In the data area of your worksheet so that It looks like this: A P C Chapter 6: Applying Excel Part 2 of 2 2. 3 Data 4 Selling price per unit 325 10 Manufacturing costs 5 polnts 6 Variable per unit produced: 124 7 Direct materials 8 Direct labor S 58 Book 9 Variable manufacturing overhead S 29 Fixed manufacturing overhead per year 10 158,000 Selling and administrative expenses: 11 Print 12 Variable per unit sold S Fixxed per year 13 S 65,000 References 14 15 Year 1 Year 2 Units in beginning inventory 16 0 Units produced during the year 17 3,000 2,800 Units sold during the year 18 2,700 2,700 If your formulas are correct, you should get the correct answers to the following questlons. (a) What Is the net operating Income (loss) In Year 1 under absorptlon costing? (b) What Is the net operating Income (loss) In Year 2 under absorption costing? (c) What Is the net operating Income (loss) In Year 1 under varlable costing? (d) What Is the net operating Income (loss) In Year 2 under varlable costing? (e) The net operating Income (loss) under absorptlon costing Is less than the net operating Income (loss) under varlable costing In Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon mark will be automatically graded as incorrect.) ? Units were left over from the previous year. The cost of goods sold is always less under variable costing than under abs orption costing. ? Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing. 3. Make a note of the absorptlon costing net operating Income (loss) In Year 2 At the end of Year 1, the company's board of directors set a target for Year 2 of net operating Income of $140,000 under absorption costing. If this target Is met, a hefty bonus would be pald to the CEO of the company. Keeping everything else the same from part (2) above. change the units produced In Year 2 to 5,200 units. (a) Would this change result In a bonus belng pald to the CEO? O Yes O No (b) What Is the net operating Income (loss) In Year 2 under absorptlon costing? (C) Would this doubling of production In Year 2 be In the best Interests of the company If sales are expected to continue to be 2,700 units per year? O Yes O No