A. What is the net operating income (loss) in Year 1 under absorption costing?

B. What is the net operating income (loss) in Year 2 under absorption costing?

C. Keeping everything else the same from above, change the units produced in Year 2 to 5,400 units.

3 $ 376 5 6 $ 130 57 Data 4 Selling price per unit Manufacturing costs: 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 14 $ $ A 25 $ 178,200 9 $ $ 106,000 15 Year 1 Year 2 0 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 3,300 2,900 2,700 2,900