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Calculate profit for both years using variable costing. Net profit $ 2020 2021

Calculate profit for both years using variable costing. Net profit $ 2020 2021

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits: Units produced Units sold Selling price per unit Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year Fixed selling and administrative expense per year Net profit tA $ 2020 2020 12,000 10,000 $4,000 $800 $1,500 $300 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. $2,400,000 $1,500,000 2021 Total 8,000 20,000 10,000 20,000 $4,000 $800 $1,500 $300 $2,400,000 $1,500,000 LA 2021
Transcribed Image Text:The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits: Units produced Units sold Selling price per unit Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year Fixed selling and administrative expense per year Net profit tA $ 2020 2020 12,000 10,000 $4,000 $800 $1,500 $300 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. $2,400,000 $1,500,000 2021 Total 8,000 20,000 10,000 20,000 $4,000 $800 $1,500 $300 $2,400,000 $1,500,000 LA 2021
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