Lighthouse Corporation has the following standard costs and production data in 2021: Unit sales price P150 Unit variable cost of production 100 Unit fixed overhead 25 Unit variable expense 15 Unit fixed expenses 10 Beginning Inventory 5,000 units Normal capacity 25,000 units.

In profit or loss calculation, it is assumed that normal capacity equals actual production.

CASE B. Production (25,000 units); Sales (23,000 units)

2.a Compute the profit or loss using absorption costing and variable costing. 2.b Compute the change in profit using the production and sales perspective.