During Year 2. Vemon Manufacturing Company incurred $120,000,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in Year 2 Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $66 per unit. Packaging, shipping, and sales commissions are expected to be $19 per unit. Vernon expects to sell 2,400,000 batteries before new research renders the battery design technologically obsolete. During Year 2. Vernon made 438.000 batteries and sold 393,000 of them Required a. Identify the upstream and downstream costs b. Determine the Year 2 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP c. Determine the sales price assuming that Vernon desires to earn a profit margin that is equal to 25 percent of the total cost of w developing, making, and distributing the batteries d. Prepare a GAAP-based income statement for Year 2 Use the sales price developed in Requiremente Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Identify the upstream and downstream costs. 1 Research and development 2 Packaging 3 Shipping 4. Sales commissions Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Determine the Year 2 amount of cost of goods sold and the ending inventory balance that would appear on the finan statements that are prepared in accordance with GAAP. Cost of goods sold Ending inventory Complete this question by entering your answers in the tabs belo Required A Required B Required C Required D Prepare a GAAP-based income statement for Year 2. Use the sales price de intermediate calculations.) VERNON MANUFACTURING COMPANY Income Statement Net income (loss)