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

2011 2012 2013 total

unit sold 3000 3000 3000 9000

units produced 3000 4500 1500 9000

fixed production cost 45000 45000 45000 variable production cost p/u 75 75 75

selling price per unit 225 225 225

fixed selling and admin expec 45000 4500 4500

1. find out profit and the value of ending inventory for each year using full costing

2. describe why profit fluctuates from year to year even though the number of units sold, the selling price, and the cost of structure remain constant.

3. find out profit and the value of ending inventory for each year using variable costing.

4. describe why, using variable costing, profit does not fluctuate from year to year