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Security Technology Inc. (STI) is a manufacturer of an electronic control system used in the manufacture of certain special-duty auto transmissions used primarily for police and military applications. The part sells for $63 per unit and had sales of 24,400 units in the current year, 2015. STI has no inventory on hand at the beginning of 2015 and is projecting sales of 27,200 units in 2016. STI is planning the same production level for 2016 as in 2015, 25,800 units. The variable manufacturing costs for STI are $24 and the variable selling costs are only $0.60 per unit. The fixed manufacturing costs are $180,600 per year and the fixed selling costs are $580 per year Required 1. Prepare an income statement for each year using full costing. (Round your final answers to nearest whole dollar amount.) SECURITY TECHNOLOGY INC Full Costing Income Statement 2015 2016 Sales $ 1,537,200 $ 1,713,600 Less: Cost of goods sold Beginning inventory $43,400 Cost of production Available for sale Less ending inventory 799,800 799,800 43,400 799,800 843,200 Cost of goods sold 756,400 $780,800 843,200 $ 870,400 Gross margin Less selling and administrative costs 14,640 580 16,320 580 Variable Fixed 15,220 $765,580 16,900 $ 853,500 Operating income

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