please please answer ASAP , according to information in the question answer ONLY these question: 1. prepare a reconciliation from your operating income under variable costing to absorption costing for year 3

2.referring again to the absorption costing income statement explain why the company suffered loss in year 3 but reported positive operating income in year1 although same number of units were sold in each year

3.if the company had used just in time(JIT) during year 2 and 3 and produced only what could be sold what would have been companies opertating income for each year under absorption costing ?

QUESTION 2 ABC Company manufactures and sells a unique electronic part. The company's planes highly automated with low variable and high fixed manufacturing costs. Operating results on an absorption costing basis for the first three years of activity were a follows: Year 1 Year 2 Year 3 $704,000 5528.000 $704.000 0 Sales Cost of goods sold: Beginning inventory Cost of goods manufactured Goods available for sale Less ending inventory Cost of goods sold Gross margin Less selling and administrative expenses Net income (loss) 0 520,000 520,000 0 520,000 184,000 180,000 $4,000 550,000 550,000 220,000 330,000 198,000 160.000 $38.000 220,000 496.000 716.000 186,000 530,000 174.000 180.000 S(6.000) Additional information about the company is as follows: i. Variable manufacturing costs (direct labor, direct materials, and variable manufacturing overhead) total 83 per unit, and fixed manufacturing overhead costs total $400,000 ii. Fixed manufacturing costs are applied to units of product on the basis of the number of units produced each year (i.e., a new fixed overhead rate is computed cach year). it. The company uses a FIFO inventory flow assumption iv. Variable selling and administrative expenses are $2 per unit sold. Fixed selling and administrative expenses total $100,000. Production and sales information for the years is as follows: Production in units Sales in units Year 1 40,000 40,000 Year 2 50,000 30,000 Year 3 32,000 40,000 C Required: i. Compute the net income for each year under the variable costing approach. ii. Referring to the absorption costing income statements above, explain why net income was higher in Year 2 than in Year 1 under absorption costing, in light of the fact that fewer units were sold in Year 2 than in Year 1. ii. Referring again to the absorption costing income statements, explain why the company suffered a loss in Year 3 but reported a profit in Year 1, although the same number of units was sold in each year. 3 cast year is although some und iv. Why do proponents of absorption costing argue that absorption costing is preferable as the basis for pricing decisions? nosere. full consistent with long-run pricing decision that must UV full V. Why do proponents of variable costing prefer variable costing when making pricing decisions? Emphasizes contribution in short hin in Y 7 than y booz prong deci