PralineYum uses standard costing to produce a particularly popular type of candy. PralineYum's President, Chad MoCloud was unhappy after reviewing the income statements for the first 3 years of business. He said, 7 was told by our accountants-and in fact, I have memonized - that our breakeven volume is 25,000 units. I was happy that we reached that sales goal in each of our first 2 years. But here's the strange thing: In our first year, we sold 25,000 units and indeed we broke even. Then, in our second year we sold the same volume and had a signficant, positive operating income. I didn't complain, of course. . but here's the bad part. In our third year, we sold 10% move candy, but our operating income dropped by nearly 90% from what it was in the second year! Wo didn't change our selling price or cost structure over the past 3 years and have no price, elficiency, or spending variances ... so what's going on?r" (Click the icon to view the absorplion costing income statements for the three yoars.) Read the requirements. Requirement 1. What denominator lovel is PralineYum using to alocate foed manufacturing costs to the candy? How is PralineYum treating any tavorable or unlavorable production-volume variance at the end of the year? Explain your aniower briofly. The denominator level used to allocato fred manutacturing costs in units. Data table Data table