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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
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? lake a note of the absorption costing net operating income (loss) in Year 2 A the end of Year 1, the company's board of directors set a target for Year 2 net operating income of $140,000 under absarption osting. If this target is met, a large bonus would be paid to the CEO of the company. Keeping everything eise the same from part (2) bove, change the units produced in Yeor 2 to 4,600 units. b) 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 ausolption costing? (b) What is the net operating income (loss) in Year 2 under absorption costing? 2. Change all of the numbers in the data area of your worksheet so that it looks like this (d) What is the net operating income (loss) in Year 2 under variable costing? (c) What is the net operating income (loss) in Year 1 under variable costing
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