Rooney 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.) Rooney sells its products for $109.60 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Rooney 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. Complete this question by entering your answers in the tabs below. Prepare income statements based on absorption costing for Year 2. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. 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 Rooney sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3 ? 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. Complete this question by entering your answers in the tabs below. 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