The following information is available for Dunworth Canoes, a company that builds inexpensive aluminum canoes:

In its first year of operation, the company produced 21,000 units but was able to sell only 18,000 units. In its second year, the company needed to get rid of excess inventory (the extra 3,000 units produced but not sold in 2014) so it cut back production to 15,000 units.
Required
a. Calculate profit for both years using full costing.
b. Note that profit has declined in 2015. Is company performance actually worse in 2015 compared to 2014?
c. Calculate profit for both years using variable costing.
d. Does variable costing profit present a more realistic view of firm performance in the two years? Explain.

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2014 2015 Units produced Units sold Total 36,000 36,000 ling price per unit Variable production costs per unit Direct material per unit Direct labor per unit Variable manufacturing overhead 21,000 18,000 500 200 80 $50 15,000 18,000 $ 500 $ 200 80 50 $ 70 $630,000 $200,000 $ 70 630,000 200,000 per unit Fixed manufacturing overhead per year Fixed selling and administrative expense per year