A company has $25 per unit selling price, $7.00 per unit in variable production cost and $2.00 per unit in variable selling and administrative cost. The annual fixed production cost is $400,000. The annual fixed selling and administrative cost is $50,000.

Complete the table below for each year. Assume a FIFO flow.

2016 2017 2018 2019

Units Produced 120,000 150,000 100,000 100,000

Units Sold 110,000 120,000 140,000 100,000

Cost per unit under variable costing 9 9 9 9

Cost per unit under absorption costing

Operating income under variable costing 1,310,000 1,470,000 1,790,000 1,150,000

Operating income under absorption costing 1,343,333.33 1,550,000 1,630,000 1,150,000

Ending inventory using variable costing ( $ ) Zero Zero

Ending inventory using absorption costing ( $ ) Zero Zero