The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits:

	2020	2021	Total
Units Produced	12,000	8,000	20,000
Units Sold	10,000	10,000	20,000
Selling Price per Unit	4,000	4,000
Direct Material per Unit	800	800
Direct Labor per Unit	1,500	1,500
Variable Manufacturing Overhead per Unit	300	300
Fixed Manufacturing Overhead per Year	2,400,000	2,400,000
Fixed Selling and Administrative Expense per Year	1,500,000	1,500,000

In its first year of operation, the company produced 12,000 units but was able to sell only 10,000 units. In its second year, the company needed to get rid of excess inventory (the extra 2,000 units produced but not sold in 2020), so it cut back production to 8,000 units. Calculate profit for both years using variable costing.