Question
Vermillion BBQ produces stainless steel propane gas grills. The company has been in operation for 3 years, and sales have declined each year due to
Vermillion BBQ produces stainless steel propane gas grills. The company has been in operation for 3 years, and sales have declined each year due to increased competition. The following information is available:
Units sold | 30,500 | 27,500 | 26,100 | 84,100 | |||||
Units produced | 30,500 | 30,500 | 23,100 | 84,100 | |||||
Fixed production costs | $30,164,500 | $30,164,500 | $30,164,500 | ||||||
Variable production costs per unit | $1,020 | $1,020 | $1,020 | ||||||
Selling price per unit | $2,551 | $2,551 | $2,551 | ||||||
Fixed selling and administrative expense | $377,900 | $377,900 | $377,900 |
Calculate profit and the value of ending inventory for each year under full costing. (Round cost per unit and final answer to 0 decimal places, e.g. 15.)
2017 2018 2019
Net Profit ? ? ?
Ending Inventory ? ? ?
I have no idea where to start, any information is greatly appreciated. Thanks!
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