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Fletcher Company manufactures

Fletcher Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: During its first year of operations, Fletcher produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $50 per unit. 1. Assume the company uses variable costing: Compute the unit product cost for year 1 and year 2.Prepare an income statement for year 1 and year 2.

 

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