Tampa Enterprises released the following figures from its records for the past two years: Problem 2.72 Comparison of Variable Year | Year 2 and Absorption Costing:
SalesiUmiiSeeeucee = re ee ee ee res. 250,000 250,000 Profit Performance BrOGUCTIOMIMUMIS tame enn ae etl. eee w sal 250,000 344,000 Analysis SONICS OTANI aac cons edie wads ue sed cE 45$45$ 45 (LO 6,7, 8)
Variable manufacturing cost per unit................04 24$24$ 24 Annual committed manufacturing cost ................ 860,000$860,000$860,000 eXcel Variable selling and administrative costs per unit sold. .... 2.40$2.40$ 2.40 minh, comnusionse Committed selling and administrative costs............. 840,000$840,000$840,000 BEGIMNINOMMVENTONY! eartan osen uie Seta oecoma Dabaer ea od $ 0 ?
Required

a. Prepare income statements for both years using absorption costing.

b. Prepare income statements for both years using variable costing.

c. Comment on the two operating profit figures. Write a brief report explaining why the operating profits are different, if they are.

d. BUILD YOUR OWN SPREADSHEET. Build an Excel spreadsheet to complete requirements

(a) and (b).