The following information is available for Captain Spa, a manufacturer of above-ground spa kits:

                                                                                         2011               2012             Total

Units produced                                                               20,000             16,000          36,000

Units sold                                                                        18,000             18,000          36,000

Selling price per unit                                                       $8,000             $8,000

Direct material per unit                                                   $1,600             $1,600

Direct labor per unit                                                        $3,000             $3,000

Variable manufacturing overhead per unit                        $600                $600

Fixed manufacturing overhead per year                  $4,800,000      $4,800,000

Fixed selling and administrative expense per year   $3,000,000      $3,000,000

In its first year of operation, the company produced 20,000 units, but was only able to sell 18,000 units. In its second year, the company needed to get rid of excess inventory (the extra 2,000 units produced but not sold in 2011) so it cut back production to 16,000 units.

Calculate profit for both years using full costing.