In manufacturing the main product A, a company processes the resulting waste material into two by-products, M1 and M2. Using the method of working backwards from the sales value to an estimated cost, prepare a comparative profit and loss statement of the three products from the following data:

(i) Total costs upto separation point was ₹1,36,000.

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(ii) Sale (all production) (iii) Cost after separation (iv) Estimated net profit percentage to sales values (v) Estimated selling expenses as percentage of sales values A *3,28,000 M M *32,000 9,600 20 48,000 14,400 30 20 20 20