Change all of the numbers in the data area of your worksheet so that it looks like this:

If your formulas are correct, you should get the correct answers to the following questions.

$1.$ What is the net operating income $($loss$)$ in year, one under absorption costing

$2.$what is the net operating income $($loss$)$ in year two under absorption costing

$3.$ What is the net operating income $($Loss$)$ in year, one under variable costing

$4.$ What is the net operating income $($loss$)$ in year $2$ under variable costing

$5.$ At the end of year one, the companies, Board of Directors a target for year two net operating income of $$60,000$ under absorption costing if this target is meant a large bonus would be paid to the CEO of the company keeping everything else the same from part two above change the units produced in your $2$ to $5600$ units.

A$.$ What is the net operating income$($loss$)$ in year $2$ under absorption costing