This is all one question with several parts for my accounting homework. I've tried but I keep getting the wrong answer please help.

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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 1 under absorption costing?

(b) What is the net operating income (loss) in Year 2 under absorption costing?

(c) What is the net operating income (loss) in Year 1 under variable costing?

(d) What is the net operating income (loss) in Year 2 under variable costing?

(e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because:

• 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 released from inventories under absorption costing.

3.

Make a note of the absorption costing net operating income (loss) in Year 2.

At the end of Year 1, the companys board of directors set a target for Year 2 of net operating income of $40,000 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 3,800 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

(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 2,100 units per year?

• Yes

• No

Chapter 6: Applying Excel
Data
Selling price per unit	$324
Manufacturing costs:
Variable per unit produced:
Direct materials	$155
Direct labor	$71
Variable manufacturing overhead	$21
Fixed manufacturing overhead per year	$95,000
Selling and administrative expenses:
Variable per unit sold	$9
Fixed per year	$48,000
	Year 1	Year 2
Units in beginning inventory	0
Units produced during the year	2,500	1,900
Units during the year	2,100	2,100