Module 04 Assignment - Problems - Variable Costing

XM Outfitters produces Kayaks. Download this Excel spreadsheet which contains information for the first three years of business and use it to present your calculations and answers to the questions below:

• Calculate profit and the value of ending inventory for each year using full costing.
• Explain why profit fluctuates from year to year even though the units sold and selling price remains the same.
• Calculate profit and the value of ending inventory for each year using variable costing.
• Explain why when using variable costing profit does not fluctuate from year to year.

Submit your completed assignment to the drop box below. Please check the Course Calendar for specific due dates.

Save your assignment as an Excel spreadsheet. (Mac users, please remember to append the ".xlsx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:

Jstudent_exampleproblem_101504