In: Accounting
Problem 5.4 (LO1, 2) Variable and Full Costing: Earnings Management with Full Costing; Changes in Production and Sales Sampson Steel produces high-quality worktables. The company has been in operation for three years, and sales have declined each year due to increased competition. The following information is available:
2020 |
2021 |
2022 |
Total |
|
Units sold |
10,000 |
9,000 |
8,000 |
27,000 |
Units produced |
10,000 |
10,000 |
7,000 |
27,000 |
Fixed production costs |
$350,000 |
$350,000 |
$350,000 |
|
Variable production costs per unit |
$100 |
$100 |
$100 |
|
Selling price per unit |
$350 |
$350 |
$350 |
|
Fixed selling and administrative expenses |
$300,000 |
$300,000 |
$300,000 |
Required