24 Highfax Inc. manufactures a small part that is widely used in various electronic products. Operating results for the first three years of operation are as follows: Year 1 Year 2 Sales Year 3 800,000 800,000 720,000 CGS 520.000. 405.000 Gross margin 280,000 315,000 Selling and admin. Expenses 240,000 230.000 Net operating income (loss) 40,000 85,000 Production and sales data for the three year period were as follows: Year 1 Production units Sales units 50,000 50,000 Year 2 60,000 45,000 Year 3 40,000 50,000 Additional information: 1. The company plant is highly automated. Variable manufacturing costs total $2 per unit. Annual fixed manufacturing overhead is $360,000. 2. Variable selling and administrative expenses were $3 per unit sold. Annua fixed selling and administrative expenses totaled $100,000 annual. 3. The above costs stayed constant across the three years and the company uses a FIFO inventory flow assumption. Required: 1. Compete the traditional income statement above for year 3. 2. Compete the following NOI Reconcile table (show full details how you calculated the deferred and released amounts for any credit). Reconciliation report Variable costing NOI Year 1 Year 2 Year 3 FO deferred in Inventory FO released from Inventory Absorption costing NOI 40,000 85,000 k Save and Submit to save and submit. Click Save All Answers to save all answers