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 less than the net operating income $($loss$)$ under variable costing in year $2$ because:

$($select all that apply$)$

$$ units were left over from the pervious year

$$ the cost of goods sold is always less under variable costing than absorption costing

$$ sales exceeded production so some of the fixed manufacturing overhead of the period was releases from inventories under absorption costing.

$3.$ Make note of the absorption costing net operating income $($loss$)$ in year $2.$

At rhe end of year $1,$ the company's board of directors set a target for year $2$ net operating income of $$160,000$ under absorption costing. If this target is met, a large bonus would be paid to the CEO of the company. Keeping everything else the same form part $2$ above, change the units produced in year $2$ to $5,200$ units.

A$)$ would this change results in a bonus being paid to the CEO?

$$Yes

$$No

B$)$ what is the net operating income $($loss$)$ in year $2$ under absorption costing?