Svenborg AS manufactures and sells wide-screen television sets. It uses an actual costing system, in which unit costs are calculated on a monthly basis. Data relating to January, February and March of 2008 are:

The selling price per unit is DKr 2500.
Required
1 Present income statements for Svenborg in January, February and March of 2008 under (a) variable costing and (b) absorption costing.
2 Explain any differences between (a) and (b) for January, February and March.

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Januaryebary March Unit data Opening stock Production Sales 0 1000 700 300 800 800 300 1 250 1 500 Variable-cost data Manufacturing costs per unit produced DKr 900 Dr900 DKr 900 600 Marketing costs per unit sold 600 600 Fixed-cost data Manufacturing costs Marketing costs DKr 400000 140000 DKr 400000 140000 DKr 400000 140000