hi... how do I findthe net operating income (loss)in Year 1 under absorption costing?

2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 B C Chapter 5: Applying Excel Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year Units in beginning inventory Units produced during the year Units sold during the year $337 $118 $60 $33 $162,000 $5 $76,000 Year 1 0 3,000 2,800 Year 2 2,700 2,800 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? Net operating income sheet is drawn here (b) What is the net operating income (loss) in Year 2 under absorption costing? sheet is drawn here (c) What is the net operating income (loss) in Year 1 under variable costing? sheet is drawn here (d) What is the net operating income (loss) in Year 2 under variable costing? sheet is drawn here (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because (Select all that apply.): Units were left over from the previous year. The cost of goods sold is always less under variable costing than under absorption costing. Sales exceeded production so some of the fixed manufacturing overhead of the period was sheet is drawn here . 3. Make a note of the absorption costing net operating income (loss) 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 $170,000 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 No (b) What is the net operating income (loss) in Year 2 under absorption costing? sheet is drawn here (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 No qattachments_ce84a4ddde277de05d05fbdb9180ca443d342c64.xlsx Chapter 3: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 20,000 units $60 per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relationships Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit $60 per unit 45 per unit $15 per unit CM ratio Variable expense ratio 15% 75% Compute the break-even Break-even in unit sales Break-even in dollar sales Compute the margin of safety Margin of safety in dollars Margin of safety percentage Compute the degree of operating leverage Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage 4,000 units $1,600,000 ($400,000) 33% $ 1,200,000 900,000 15 240,000 $ 59,985 0.03 Page 1