Munoz Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products. (Assume that selling and administrative expenses are associated with goods sold.) Munoz sells its products for $109.70 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Munoz sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3. d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 and Year 3. Prepare income statements based on absorption costing for Year 2. Note: Do not round intermediate calculations. Prepare income statements based on absorption costing for Year 3 . Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Since Munoz sold the same number of units in Year 2 and Year 3, why did net income increase in Yea Complete this question by entering your answers in the tabs below. Determine the costs of ending inventory for Year 3. Note: Do not round intermediate calculations. Prepare income statements based on variable costing for Year 2. Note: Do not round intermediate calculations. Prepare income statements based on variable costing for Year 3 . Note: Do not round intermediate calculations