1. Calculate profit for both years using full costing.

2.Note that profit has declined in 2015. Is company performance actually worse using full costing in 2015 compared to 2014?

3.Calculate profit for both years using variable costing.

4.Does variable costing profit present a more realistic view of firm performance in the two years?

Problem 5-6 (Part Level Submission) The following information is available for Dunworth Canoes, a company that builds inexpensive aluminum canoes: Total 14,76035,200 17,60035,200 2015 2014 20,440 17,600 $480 Units produced Units sold Selling price per unit Variable production costs per unit Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year Fixed selling and administrative expense per year $480 $193.00$193.00 $73 $44 $76 $654,080 $654,080 $183,800 $73 $44 $76 $183,800 In its first year of operation, the company produced 20,440 units but was able to sell only 17,600 units. In its second year, the company needed to get rid of excess inventory (the extra 2,840 units produced but not sold in 2014) so it cut back production to 14,760 units (a) Your answer is incorrect. Try again. Calculate profit for both years using full costing. (Round cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g.125.) 2014 2015 Net profit