complete all requirements

Data table Requirements 1. What denominator level is Candyland using to allocate fixed manufacturing costs to the candy? How is Candyland treating any favorable or unfavorable production-volume variance at the end of the year? Explain your answer briefly. 2. How did Candyland's accountants arrive at the breakeven volume of 17,000 units? 3. Prepare a variable costing-based income statement for each year. Explain the variation in the variable costing operating income for each year based on contribution margin per unit and sales volume. 4. Reconcile the operating incomes under variable costing and absorption costing for each year, and use this information to explain to Luke Merry the positive operating income in 2020 and the drop in operating income in 2021. Candyland uses standard costing to produce a particulerly popolar type of candy. Candylands President, Luke Merry wac untapey affor reviewing the income statements for the first 3 ynars of business. He said, 7 was told by our agcountants-and in fact, I have memorized-that our breakeven volume is 17,000 units. I was hapey that we reachod that sales poal in each of our fint 2 years. But here's the strange thing: In oun first year, we sold 17,000 unite and inseed wo broke even, Then, in our second year we sold the same volume and had a siguicant, postive opereting income. I didn't complain, of course.. bet here's the bed part. In our third year, we sold towe ntion candy, but our openthing income drapped by nearfy 90% from what it wis in che secont yeart We didnl change our selling price or cost structure over the past 3 years and hame no price, efficiency of spendisg variances... so what's oche on? Requirement 1. What denomisator iovel is Candyland using to alloeate fxed manufacturing costs to the candy? How is Candyland treating ary taworicie or unfevorable prodiction-wiume varanoe at the end of the year? Explain your answer bristiy. The denominator level used to alocale fixed manufacturing cosis is