Question $5$

In July $2024,$ Jonek Limited produced and sold $20,000$ units of rechargeable fans. Cost and Revenue data were as follows:

Sales $,N1,000,000$

Production Costs: Variable N$350,000$; Fixed N$150,000$;

Admin $+$ Selling Overhead $($Fixed$)$ N$250,000$

Required:

i$.$ Prepare operating statement based on $($a$)$ Absorption Cost $($b$)$ Marginal Cost. $6$ Marks

ii$.$ If only $18,000$ were produced, prepare operating statement based on $($a$)$ Absorption Cost $($b$)$

Marginal Costs

$4$ Marks

$($Total $=10$ Marks$)$