Prepare marginal and absorption income statement based on the following information:

Per unit: RM

Selling price 45

Direct materials 11

Direct labour 8

Production overhead:

Variable 4

Fixed 3

Selling overhead:

Variable 5

Fixed 2

Administration overhead: Fixed 3

Fixed production overhead costs per unit are based on a normal monthly activity level of 8,000 units. These costs are expected to be incurred at a constant rate throughout the month. Activity levels during April and May are as follows:

 April May Sales (units) 7,000 8,750 Production (units) 8,500 7,750 

There are no stocks held on 1 April.