3. Make a note of the absorption costing net operating income (oss) 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 $40,000 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 5,400 units. (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 4 316 $ 5 $ GA 156 3 Data Selling price per unit Manufacturing costs: 6 Variable per unit produced: 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses 12 Variable per unit sold 13 Fixed per year 56 $ $ $ 21 172,800 $ 6 3 $ 81,000 14 Year 1 Year 2 0 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 3,200 2.700 2.800 2.800 (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 2,800 units per year? Yes O No