QUESTION $3(31$ marks$)$ Aria Audio Limited is a reputable company specialising in designing and manufacturing high$-$quality sound speakers for the music and entertainment industry. Their flagship product, the "EchoPro" speaker, is popular among audiophiles and professionals alike. Aria Audio Limited considers $1250$ EchoPro speakers per month to be its normal activity level. The company has budgeted fixed production overheads of R$160500$ per year, which includes expenses such as factory rent, equipment maintenance, and management salaries. Each unit of the EchoPro speaker is sold in the market for R$150.$ The monthly fixed administration overheads of R$6250$ for the $2025$ financial year include expenses such as marketing campaigns, sales salaries, and corporate office expenses. The following data reflects Aria Audio Limited's actual output of EchoPro speakers during the $2024$ and $2025$ financial years: $20242025$ Opening Stock $($units$)3000?$ Sales $($units$)10500?$ Production $($units$)890012600$ Closing stock $($units$)?2200$ The actual total cost per EchoPro speaker for the $2024$ as well as the $2025$ financial year is as follows: Direct materials R$17\mathrm{.}50$ Direct labour R$26$ Fixed manufacturing overhead R$10\mathrm{.}70$ Variable manufacturing overhead R$19$ Variable non$-$manufacturing overhead R$5\mathrm{.}50$ REQUIRED: $3\mathrm{.}1.$ Briefly explain the difference in the treatment of fixed production overheads under marginal costing and absorption costing. $(3$ marks$)3\mathrm{.}2.$ Prepare Aria Audio Limited$$s Statement of Comprehensive Income for the $2025$ financial year based on the marginal costing basis. $(13\mathrm{.}5$ marks$)3\mathrm{.}3.$ Prepare Aria Audio Limited$$s Statement of Comprehensive Income for the $2025$ financial year based on the absorption costing basis. $(11\mathrm{.}5$ marks$)3\mathrm{.}4.$ Reconcile the profit or loss calculated in $3\mathrm{.}2.$ under the marginal costing basis with the profit or loss calculated in $3\mathrm{.}3.$ based on the absorption costing basis. $(3$ marks$)$ Round your answers to two decimal places where required.