Question
Corporation reports the following information: 2009 2010 2011 Units sold 20,000 20,000 20,000 Units produced 20,000 24,000 16,000 Fixed production costs $1,200,000 $1,200,000 $1,200,000 Variable
Corporation reports the following information:
2009
2010
2011
Units sold
20,000
20,000
20,000
Units produced
20,000
24,000
16,000
Fixed production costs
$1,200,000
$1,200,000
$1,200,000
Variable production costs per unit
$200
$200
$200
Selling price per unit
$400
$400
$400
Fixed selling and administrative expenses
$400,000
$400,000
$400,000
Calculate the profit each year using variable costing.Explain why profit does not fluctuate from year to year using variable costing.
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Managerial Accounting
Authors: Sivaramakrishna, Ramji Balakrishnan
1st Edition
0471467855, 978-0471467854
