Question
Hamilton Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information on the first three years of business is as
Hamilton Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information on the first three years of business is as follows 2011 2012 2013 total unit sold 3000 3000 3000 9000 units produced 3000 4500 1500 9000 fixed production cost 45000 45000 45000 variable production cost p/u 75 75 75 selling price per unit 225 225 225 fixed selling and admin expec 45000 4500 4500 1. Calculate profit and the value of ending inventory for each year using full costing 2.Explain why profit fluctuates from year to year even though the number of units sold, the selling price, and the cost of structure remain constant. 3.Calculate profit and the value of ending inventory for each year using variable costing. 4.Explain why, using variable costing, profit does not fluctuate from year to year
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