Hamilton Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information on the first 3 years of business is as follows:

Required
a. Calculate profit and the value of ending inventory for each year using full costing. Round cost percent to two decimal places.
b. Explain why profit fluctuates from year to year even though the number of units sold, the selling price, and the cost structure remain constant.
c. Calculate profit and the value of ending inventory for each year using variable costing.
d. Explain why, using variable costing, profit does not fluctuate from year to year.

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Total 2019 2018 2017 Units sold Units produced Fixed production costs Variable production costs per unit Selling price per unit Fixed selling and administrative expenses 5,000 5,000 5,000 6,000 5,000 4,000 15,000 15,000 $50,000 $50,000 $50,000 75 $ 225 75 2$ 225 $ 75 225 $ 5,000 $ 5,000 $ 5,000