2. Change all of the numbers in the data area of your worksheet so that it looks like this: B A 1 Chapter 6: Applying Excel 2 Data $ $ 356 123 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials 8 Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11 Selling and administrative expenses 12 Variable per unit sold 13 $ $ $ $ 9 69 39 121,800 10 $ S Fixed per year 57.000 Required information If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? nces (b) What is the net operating income (loss) in Year 2 under absorption costing? Required information (c) What is the net operating income (loss) in Year 1 under variable costing? (d) What is the net operating income (loss) in Year 2 under variable costing? Ch Required information (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable 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 question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Units were len over from the previous year, | The cost of goods sold is always less under variabile conting the under absorption costing Sales exceeded production so some of the feed manufacturing overneed or the period was released from inventories under atreorption costing 3 Make a note of the absorption costing net operating income (oss) in Year 2 At the end of Year the company's board of directors set a target for Year 2 of net operating income of 5160.000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 4.200 units (0) Would this change result in a bonus being paid to the CEO? (a) Would this change result in a bonus being paid to the CEO? Yes O No (b) What is the net operating income (loss) in Year 2 under absorption costing? Required information (c) Would this doubling of production in Year 2 be in the best interests of the company it sales are expected to continue to be 2.400 units per year? - Yes NO IRMACILITIEND CLINIS Required information 8 9 69 $ $ 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 $ 39 121,800 $ $ 2 Fixed per year $ 57,000 14 15 Year 1 Year 2 0 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 2,900 2.400 2.100 2,400